(DM variances) In November 2010, Day Time Publishing Company’s costs and quantities of paper consumed in manufacturing its 2011 Executive Planner and Calendar were as follows:
|
Actual unit purchase price |
$0.13 per page |
|
Standard unit price |
$0.14 per page |
|
Standard quantity for good production |
97,900 pages |
|
Actual quantity purchased during November |
115,000 pages |
|
Actual quantity used in November |
100,000 pages |
a. Calculate the total cost of purchases for November.
b. Compute the material price variance (based on quantity purchased).
c. Calculate the material quantity variance.