Question:
Computing materials variances:
D-List Calendar Company specializes in manufacturing calendars that depict obscure comedians. The company uses a standard cost system to control its costs. During one month of operations, the direct materials costs and the quantities of paper used showed the following:
|
Actual purchase price
|
$0175 per page
|
|
Standard quantity allowed for production
|
170,000 pages
|
|
Actual quantity purchased during month
|
200,000 pages
|
|
Actual quantity used during month
|
185,000 pages
|
|
Standard price per page
|
$0.17 per page
|
1. Total cost of purchases for the month
2. Materials price variance
3. Materials quantity variance
4. Net materials variance