Question
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 5,000 Budgeted usage of PPS 45,000 pounds Actual number of units of Flex 10 manufactured 4,000 PPS purchased and used 39,000 pounds Total actual cost of PPS used $ 224,640 Direct materials usage variance $ 21,600 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:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started