Exercise
Computing Materials Variances
DList 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. $ per page
Standard quantity allowed for production pages
Actual quantity purchased during month pages
Actual quantity used during month. pages
Standard price per page. $ per page
Calculate the following:
Use and to designate favorable and unfavorable variances. Enter all amounts as positive numbers.
Total cost of purchases for the month
$ QUESTION
Materials purchase price variance
$ QUESTION
Materials quantity varianci $ QUESTION
Net materials variance QUESTION
