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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

  • $310,500.

  • $324,000.

  • $405,000.

  • $378,000.

  • $420,000.

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