Hart Company made 3,280 shelves using 22,280 pounds of wood costing $300,780. The company's direct materials standards for one shelf are 8 pounds of wood at $13.40 per pound. Exercise 21-13 (Algo) Computing and analyzing materials variances LO P3 AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price 1. Compute the direct materials price and quantity variances along with the total direct materials variance. 2. Hart applies management by exception by investigating direct materials variances of more than 5% of actual direct materials costs. Which direct materials variances will Hart investigate further?
Hart Company made 3,280 shelves using 22,280 pounds of wood costing $300,780. The company's direct materials standards for one shelf are 8 pounds of wood at $13.40 per pound. Exercise 21-13 (Algo) Computing and analyzing materials variances LO P3 AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price 1. Compute the direct materials price and quantity variances along with the total direct materials variance. 2. Hart applies management by exception by investigating direct materials variances of more than 5% of actual direct materials costs. Which direct materials variances will Hart investigate further?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
Please do not give solution in image format thanku
![[The following information applies to the questions displayed below.]
Hart Company made 3,280 shelves using 22,280 pounds of wood costing $300,780. The company's direct materials
standards for one shelf are 8 pounds of wood at $13.40 per pound.
Exercise 21-13 (Algo) Computing and analyzing materials variances LO P3
AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price
1. Compute the direct materials price and quantity variances along with the total direct materials variance.
2. Hart applies management by exception by investigating direct materials variances of more than 5% of actual direct materials costs.
Which direct materials variances will Hart investigate further?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute the direct materials price and quantity variances along with the total direct materials variance. (Indicate the effect of each variance by selecting
favorable, unfavorable, or no variance.)
Actual Cost
0
$
0
$
$
0
0
< Required 1
$
0
Required 2 >
Standard Cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4cf9133d-2dd4-45f6-b833-be7167a81438%2Fee796970-e8e3-469c-b7cd-7d613d1d2ea4%2Fp5dxczm_processed.png&w=3840&q=75)
Transcribed Image Text:[The following information applies to the questions displayed below.]
Hart Company made 3,280 shelves using 22,280 pounds of wood costing $300,780. The company's direct materials
standards for one shelf are 8 pounds of wood at $13.40 per pound.
Exercise 21-13 (Algo) Computing and analyzing materials variances LO P3
AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price
1. Compute the direct materials price and quantity variances along with the total direct materials variance.
2. Hart applies management by exception by investigating direct materials variances of more than 5% of actual direct materials costs.
Which direct materials variances will Hart investigate further?
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Compute the direct materials price and quantity variances along with the total direct materials variance. (Indicate the effect of each variance by selecting
favorable, unfavorable, or no variance.)
Actual Cost
0
$
0
$
$
0
0
< Required 1
$
0
Required 2 >
Standard Cost
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education