Hart Company made 3,320 bookshelves using 22,320 board feet of wood costing $305,784. The company's direct materials standards for one bookshelf are 8 board feet of wood at $13.60 per board foot.
Required:
1. Compute the direct materials price and quantity variances incurred in manufacturing these bookshelves.

Instructions are listed below.

Explanation:

Giving the following information:

Hart Company made 3,320 bookshelves using 22,320 board feet of wood costing $305,784. The company's direct materials standards for one bookshelf are 8 board feet of wood at $13.60 per board foot.

To calculate the variances, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (13.60 - 305,784/22,320)*22,320= $,2,232 unfavorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (3,320*8 - 22,320)*13.6= $57,664 favorable

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