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Disney World uses powdered plastics (PPS) to manufacture a high-pressure board used in a digital equipment product, Flex 10. Information concerning its operation in June
Disney World 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 | 5,900 | |||
| Budgeted usage of PPS | 53,100 | pounds | ||
| Actual number of units of Flex 10 manufactured | 4,900 | |||
| PPS purchased | 57,720 | pounds | ||
| PPS used | 48,000 | pounds | ||
| Total actual cost of PPS used | $ | 266,880 | ||
| Direct materials usage variance | $ | 28,860 | unfavorable | |
Assume that Disney recognizes the material purchase-price variance at the point of purchase. The direct materials purchase-price variance (rounded to the nearest dollar) is:
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