Required information

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.] Hart Company made 3,280 bookshelves using 22,280 board feet of wood costing $300,780. The company's direct materials standards for one bookshelf are 8 board feet of wood at $13.40 per board foot.

Exercise 08-13 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?