BTS Company made 6,000 bookshelves using 88,000 board feet of wood costing $607,200. The companys direct materials
Question:
BTS Company made 6,000 bookshelves using 88,000 board feet of wood costing $607,200. The company’s direct materials standards for one bookshelf are 16 board feet of wood at $7 per board foot.
(1) Compute the direct materials variances incurred in manufacturing these bookshelves.
(2) Interpret the direct materials variances.
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1 Preliminary computations Actual quantity 88000 bd ft given Standard quantity 6000 units x 16 bd ftunit 96000 bd ft Actual price 60720088000 bd ft 690bd ft Standard price 700bd ft given Direct material cost variances Actual units at actual cost 88000 bd ft 690 607200 Standard units at standard cost 6000 x 16 bd ft ...View the full answer
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Related Book For 
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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