Required information Use the following information for the Exercises below. (The following information applies to the questions displayed below.) Hart Company made 3,060 bookshelves using 22,060 board feet of wood costing $ 273,544. The company's direct materials standards for one bookshelf are 8 board feet of wood at $12.30 per board foot. Exercise 21-13 Computing and interpreting 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 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? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the direct materials price and quantity variances and classify each as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Actual Cost Standard Cost AQ AP AQ X SP SQ X SP 0 X S 0 S 0 S 01 S 0 Required Required 2 > Required 1 Required 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? Which direct materials variances will Hart investigate further? Record closing of price and quantity variances to cost of goods sold. Note: Enter debits before credits. Transaction General Journal Debit Credit 1