D-List Calendar Co. 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $.175 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $.17 per page
Calculate the following:
1. Total cost of purchases for the month
2. Materials purchase price variance
3. Materials quantity variance
4. Net materials variance