In August 2001, East Publishing Company's costs and quantities of paper consumed in manufacturing its 2002 Executive

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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.

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Cost Accounting Traditions and Innovations

ISBN: 978-0324026450

4th edition

Authors: Barfield Jesse, Raiborn Cecily, Kinney Michael

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