Hart Company made 3,300 bookshelves using 26,000 board feet of wood costing $322,400. The company's direct materials standards for one bookshelf are 9 board feet of wood at $12.30 per board foot.

Hart Company made 3,300 bookshelves using 26,000 board feet of wood costing $322,400. The company's direct materials standards for one bookshelf are 9 board feet of wood at $12.30 per board foot.

Explanation

Preliminary computations
Actual quantity:	26,000 bd. ft. (given)
Standard quantity:	3,300 units × 9 bd. ft./unit = 29,700 bd. ft.
Actual price:	$322,400 / 26,000 bd. ft. = $12.40 / bd. ft.
Standard price:	$12.30 / bd. ft. (given)

Direct material cost variances
 

Actual units at actual cost [26,000 bd. ft. @ $12.40]	$	322,400
Standard units and standard cost [29,700 bd. ft. @ $12.30]		365,310
Direct material cost variance	$	42,910	F

Price and Quantity Variances
Actual Cost AQ × AP			AQ × SP			Standard Cost SQ × SP
26,000 × $12.40			26,000 × $12.30			29,700 × $12.30
bd. ft. per bd. ft.			bd. ft. per bd. ft.			bd. ft. per bd. ft.
$322,400			$319,800			$365,310
	$2,600 U			$45,510 F
	(Price variance)			(Quantity variance)
		$42,910 F (Total materials variance)