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Hart Company made 4,200 bookshelves using 36,000 board feet of wood costing $360,000. The company's direct materials standards for one bookshelf are 9 board feet of wood at $9.90 per board foot.
Compute the direct materials variances incurred in manufacturing these bookshelves.

Respuesta :

Answer: $14220 Favorable

Explanation:

Firstly, we will calculate the standard cost to produce 4200 bookshelves. This will be:

= Number of bookshelf × Board feet of wood × Price per board foot

= 4200 × 9 × $9.90

= $374220

Direct material variance will be:

= Standard cost - Actual cost

= $374220 - $360,000

= $14220 Favourable

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