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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 | 8,000 | |
---|---|---|
Budgeted usage of PPS | 72,000 | pounds |
Actual number of units of Flex 10 manufactured | 6,400 | |
PPS purchased and used | 62,400 | pounds |
Total actual cost of PPS used | $ 359,424 | |
Direct materials usage variance | $ 34,560 | unfavorable |
Clear does not maintain an inventory of materials, so the amount of materials used is equal to the amount of materials purchased. The direct materials purchase-price variance is:
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