In November 2010, DayTime Publishing Company’s costs and quantities of paper consumed in manufacturing its 2011 Executive Planner and Calendar were as follows:
Actual unit purchase price .............. $0.13 per page
Standard unit price ................ $0.14 per page
Standard quantity for good production ........... 97,900 pages
Actual quantity purchased during November ..... 115,000 pages
Actual quantity used in November .......... 100,000 pages
a. Calculate the total cost of purchases for November.
b. Compute the material price variance (based on quantity purchased).
c. Calculate the material quantity variance.