(Direct material variances) In August 2001, East Publishing Company’s costs and quantities of paper consumed in manufacturing its 2002 Executive Plannerand 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.