2) Windser Company made 3,800 bookshelves using 23,200 board feet of wood costing $290,000. The company's direct materials standards for one bookshelf are 8 board feet of wood at $12 per board foot. Required A) Compute the direct materials variances incurred in manufacturing these bookshelves. B) Interpret the direct materials variances. What do you think is happening here? Check: Price variance, $11,600-U
2) Windser Company made 3,800 bookshelves using 23,200 board feet of wood costing $290,000. The company's direct materials standards for one bookshelf are 8 board feet of wood at $12 per board foot. Required A) Compute the direct materials variances incurred in manufacturing these bookshelves. B) Interpret the direct materials variances. What do you think is happening here? Check: Price variance, $11,600-U
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:2) Windser Company made 3,800 bookshelves using 23,200 board feet of wood costing
$290,000. The company's direct materials standards for one bookshelf are 8 board feet of
wood at $12 per board foot.
Required
A) Compute the direct materials variances incurred in manufacturing these bookshelves.
B) Interpret the direct materials variances. What do you think is happening here?
Check: Price variance, $11,600-U
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