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

Question:

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $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


Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Principles of Cost Accounting

ISBN: 978-1133187868

16th edition

Authors: Edward J. Vanderbeck

Question Posted: