kemeria
Oct 2, 2006, 05:50 PM
Here is the question
Perfect Print, Inc. incurred the following direct material cost in November 2006 for high-volume routine print jobs:
Actual unit purchase price $0.016per sheet
Standard unit price $0.018per sheet
Quantity purchased and used in November 490,000sheets
Standard quantity allowed for good production 492,000 sheets
Calculate the material price variance and the material quantity variance.
Do cost drivers exist in a traditional accounting system? Are they designated as such? How, if at all, does the use of cost drivers in a traditional accounting system differ from those in an activity-based costing system?
Perfect Print, Inc. incurred the following direct material cost in November 2006 for high-volume routine print jobs:
Actual unit purchase price $0.016per sheet
Standard unit price $0.018per sheet
Quantity purchased and used in November 490,000sheets
Standard quantity allowed for good production 492,000 sheets
Calculate the material price variance and the material quantity variance.
Do cost drivers exist in a traditional accounting system? Are they designated as such? How, if at all, does the use of cost drivers in a traditional accounting system differ from those in an activity-based costing system?