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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
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 | 5,600 | |||
Budgeted usage of PPS | 50,400 | pounds | ||
Actual number of units of Flex 10 manufactured | 4,600 | |||
PPS purchased | 54,000 | pounds | ||
PPS used | 45,000 | pounds | ||
Total actual cost of PPS used | $ | 236,700 | ||
Direct materials usage variance | $ | 27,000 | unfavorable | |
The cost of PPS in the flexible budget for the number of units manufactured this period (rounded to nearest dollar) is:
Multiple Choice
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$310,500.
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$324,000.
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$405,000.
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$378,000.
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$420,000.
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