Exercise $8-6$

Computing Materials Variances

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. $q,$ $$\mathrm{.}175$ per page

Standard quantity allowed for production $q,170,000$ pages

Actual quantity purchased during month $q,200,000$ pages

Actual quantity used during month. $q,185,000$ pages

Standard price per page. $q,$ $$\mathrm{.}17$ per page

Calculate the following:

Use $"F"$ and $"U"$ to designate favorable and unfavorable variances. Enter all amounts as positive numbers.

Total cost of purchases for the month

$ $$ QUESTION $4$

Materials purchase price variance

$ $$ QUESTION $5$

Materials quantity varianci $$ $ $$ QUESTION $6$

Net materials variance $$ QUESTION $7$