Q7. Hart Company

Hart Company made 3,180 shelves using 22,180 pounds of wood costing $288,340. The company's direct materials standards for one shelf are 8 pounds of wood at $12.90 per pound.

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?

Compute the direct materials price and quantity variances along with the total direct materials variance. Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance