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Clear Manufacturing uses powdered plastics (PPS) to manufacture a high-pressure board used in a digital equipment product, Flex 10. Information concerning its operation in June

Clear Manufacturing uses powdered plastics (PPS) to manufacture a high-pressure board used in a digital equipment product, Flex 10. Information concerning its operation in June is as follows:

Budgeted units of Flex 10 for June 6,300
Budgeted usage of PPS 56,700 pounds
Actual number of units of Flex 10 manufactured 5,300
PPS purchased and used 52,000 pounds
Total actual cost of PPS used $ 309,920
Direct materials usage varianceunfavorable $ 35,260 unfavorable

Clear does not maintain an inventory of materials, so the amount of materials used is equal to the amount of materials purchased. The actual purchase price per pound of PPS used is:

Multiple Choice

$8.79.

$5.96.

$7.28.

$6.41.

$8.20.

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