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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?

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ekkarill92 answered 2 years ago
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