In November, DayTime Publishing Company’s costs and quantities of paper consumed in manufacturing its annual collegiate calendar were as follows: Actual unit purchase price $0.13 per page Standard unit price $0.14 per page Standard quantity for good production 39,160 pages Actual quantity purchased during November 46,000 pages Actual quantity used in November 40,000 pages a. Calculate the total cost of purchases for November. $5,980 b. Compute the material price variance (based on quantity purchased). Note: Do not use a negative sign with your answer. Note: Round your final answers to the nearest whole dollar. $______ Favorable c. Calculate the material quantity variance. Note: Do not use a negative sign with your answer. Note: Round your final answers to the nearest whole dollar. $______ Unfavorable
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
In November, DayTime Publishing Company’s costs and quantities of paper consumed in manufacturing its annual collegiate calendar were as follows:
| Actual unit purchase price | $0.13 | per page |
| Standard unit price | $0.14 | per page |
| Standard quantity for good production | 39,160 | pages |
| Actual quantity purchased during November | 46,000 | pages |
| Actual quantity used in November | 40,000 | pages |
a. Calculate the total cost of purchases for November. $5,980
b. Compute the material price variance (based on quantity purchased).
Note: Do not use a negative sign with your answer.
Note: Round your final answers to the nearest whole dollar.
$______ Favorable
c. Calculate the material quantity variance.
Note: Do not use a negative sign with your answer.
Note: Round your final answers to the nearest whole dollar.
$______ Unfavorable
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