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(Chapter 12) In 2016, Smart Office Systems Inc. (SOSI) used 25.840 pounds of plastic (direct materials) to produce 8000 units as opposed to 2017 when
(Chapter 12) In 2016, Smart Office Systems Inc. (SOSI) used 25.840 pounds of plastic (direct materials) to produce 8000 units as opposed to 2017 when SOSI produced 8800 units using 27,840 pounds of plastic. The type of plastic SOSI uses cost $5 per pound in 2016 and rose to $5.25 per pound in 2017. In comparing results for these two years, what would be the price-recovery variance for the plastic material? (Use a negative sign if the variance is unfavorable)
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