Norio 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		5,700
Budgeted usage of PPS		51,300	pounds
Actual number of units of Flex 10 manufactured		4,700
PPS purchased		56,240	pounds
PPS used		46,000	pounds
Total actual cost of PPS used	$	246,560
Direct materials usage variance	$	28,120	unfavorable

Assume that Norio does not maintain an inventory of materials, so that the amount of materials used is equal to the amount of materials purchased. The direct materials purchase-price variance (rounded to the nearest dollar) is:

Multiple Choice

• $55,744 favorable.

• $67,639 favorable.

• $125,978 favorable.

• $70,844 favorable.

• $86,640 favorable.

Please show work, thanks!