In August 2001, East Publishing Company's costs and quantities of paper consumed in manufacturing its 2002 Executive
Question:
In August 2001, East Publishing Company's costs and quantities of paper consumed in manufacturing its 2002 Executive Planner and Calendar were as follow:
Actual unit purchase price ...............................$0.16 per page
Standard quantity allowed for good production .....195,800 pages
Actual quantity purchased during August ............230,000 pages
Actual quantity used in August .........................200,000 pages
Standard unit price ........................................$0.15 per page
a. Calculate the total cost of purchases for August.
b. Compute the material price variance (based on quantity purchased).
c. Calculate the material quantity variance.
Step by Step Answer:
Cost Accounting Traditions and Innovations
ISBN: 978-0324026450
4th edition
Authors: Barfield Jesse, Raiborn Cecily, Kinney Michael