Harmon Household Products. Inc. manufactures a number of consumer items for general household use. One of these products, a chopping board, requires expensive hardwood. During a recent month, the company manufactured 4,000 chopping boards using 11,000 board feet of hardwood. The hardwood cost the company $18,700.;The company's standards for one chopping board are 2.5 board feet of hardwood at a cost of $1.80 per board foot.;1. What cost for wood should been incurred to make 4,000 chopping blocks? How much greater or less is this than the cost that was incurred?;2. Break down the difference computed in (1) above into a materials price variance and a materials quantity variance.
Paper#26287 | Written in 18-Jul-2015Price : $32