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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 Budgeted usage of PPS Actual number of units of Flex 10 manufactured PPS purchased and used Total actual cost of PPS used Direct materials usage variance-unfavorable 5, 100 45,900 pounds 4,100 40,000 pounds $ 190,400 $ 22,010 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 O $8.65. $4.76 O O $6.23 O $6.04 $7.10
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