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		7,000
Budgeted usage of PPS		63,000	pounds
Actual number of units of Flex 10 manufactured		6,000
PPS purchased		84,000	pounds
PPS used		59,000	pounds
Total actual cost of PPS used	$	392,940
Direct materials usage variance	$	42,000	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

• $91,867 favorable.

• $86,580 favorable.

• $117,600 favorable.

• $146,160 favorable.

• $105,580 favorable.