Computing materials variances LO₃ Prime Time Calendar Company specializes in manufacturing calendars that depict famous professional athletes. 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:

Calculate the following using the diagram format shown in Figure 7- 1 to compute variances:
1.Total cost of purchases for the month.
2. Materials price variance.
3. Materials quantity variance.
4. Net materials variance.

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Actual purchase price.. Standard quantity allowed production. Actual quantity purchased during month. Actual quantity used during month.. Standard price per page $0.175 per page 170,000 pages 200,000 pages 185,000 pages $0.17 per page