D-List Calendar Company specializes in manufacturing calendars that depict obscure comedians. The company uses a standard cost

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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 . . . . . . . . . . . . . . . . . . . . . . . $0.175 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 . . . . . . . . . . . . . . . . . . . . . . $0.17 per page

Calculate the following variances:

1. Total cost of purchases for the month

2. Materials price variance

3. Materials quantity variance

4. Net materials variance


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Principles Of Cost Accounting

ISBN: 9780840037039

15th Edition

Authors: Edward J. Vanderbeck

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