Required information [The following information applies to the questions displayed below.] Hart Company made 3,260 bookshelves...

Required information

[The following information applies to the questions displayed below.]

Hart Company made 3,260 bookshelves using 22,260 board feet of wood costing $298,284. The company's direct materials standards for one bookshelf are 8 board feet of wood at $13.30 per board foot.

AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price

(1) Compute the direct materials price and quantity variances and classify each as favorable or unfavorable.
(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?

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Required information [The following information applies to the questions displayed below.] Hart Company made 4,900 bookshelves...

Required information [The following information applies to the questions displayed below.] Hart Company made 4,900 bookshelves using 22,000 board feet of wood costing $261,800. The company's direct materials standards for one bookshelf are 5 board feet of wood at $11.80 per board foot. (1) Compute the direct materials price and quantity variances incurred in manufacturing these bookshelves. AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price

Required information [The following information applies to the questions displayed below.] Laker Company reported the...

Required information [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 185 units @ $ 11.00 = $ 2,035 Jan. 10 Sales 145 units @ $ 20.00 Jan. 20 Purchase 100 units @ $ 10.00 = 1,000 Jan. 25 Sales 125 units @ $ 20.00 Jan. 30 Purchase 270 units...

Required information [The following information applies to the questions displayed below.] Laker Company reported the...

Required information [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 235 units @ $ 16.00 = $ 3,760 Jan. 10 Sales 200 units @ $ 25.00 Jan. 20 Purchase 180 units @ $ 15.00 = 2,700 Jan. 25 Sales 190 units @ $ 25.00 Jan. 30 Purchase 390 units...

Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a...

Required information [The following information applies to the questions displayed below.] Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Date Activities Units Acquired at Cost Units Sold at Retail Mar. 1 Beginning inventory 100 units @ $50.00 per unit Mar. 5 Purchase 400 units @ $55.00 per unit Mar. 9 Sales 420 units @ $85.00 per unit Mar. 18 Purchase 120 units @ $60.00 per unit Mar. 25...

Required information [The following information applies to the questions displayed below.] Cascade Company was started on...

Required information [The following information applies to the questions displayed below.] Cascade Company was started on January 1, Year 1, when it acquired $164,000 cash from the owners. During Year 1, the company earned cash revenues of $94,300 and incurred cash expenses of $69,500. The company also paid cash distributions of $9,500. Required Prepare a Year 1 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions. (Consider...

Required information [The following information applies to the questions displayed below.] Rooney Company is a retail...

Required information [The following information applies to the questions displayed below.] Rooney Company is a retail company that specializes in selling outdoor camping equipment. The company is considering opening a new store on October 1, year 1. The company president formed a planning committee to prepare a master budget for the first three months of operation. As budget coordinator, you have been assigned the following tasks. Required October sales are estimated to be $240,000, of which 40 percent will be...

Required information [The following information applies to the questions displayed below.] Cascade Company was started on...

Required information [The following information applies to the questions displayed below.] Cascade Company was started on January 1, Year 1, when it acquired $168,000 cash from the owners. During Year 1, the company earned cash revenues of $96,300 and incurred cash expenses of $61,800. The company also paid cash distributions of $12,000. Required Prepare a Year 1 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions. (Consider...

Required information [The following information applies to the questions displayed below.] Cascade Company was started on...

Required information [The following information applies to the questions displayed below.] Laker Company reported the...

Required information [The following information applies to the questions displayed below.] Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 175 units @ $ 10.00 = $ 1,750 Jan. 10 Sales 135 units @ $ 19.00 Jan. 20 Purchase 130 units @ $ 9.00 = 1,170 Jan. 25 Sales 140 units @ $ 19.00 Jan. 30 Purchase 275 units...

Required information [The following information applies to the questions displayed below.] Packard Company engaged in the...

Required information [The following information applies to the questions displayed below.] Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.) 1) Acquired $1,800 cash from the issue of common stock. 2) Borrowed $1,270 from a bank. 3) Earned $1,450 of revenues. 4) Paid expenses of $420. 5) Paid a $220 dividend. During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.) 1) Issued...

Subjects