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Roncy Manufacturing uses enhanced powder plastics (EPP) to manufacture a high-pressure board, Dura-Plastic. Information concerning its operation in June was as follows: Master Budget units
Roncy Manufacturing uses enhanced powder plastics (EPP) to manufacture a high-pressure board, Dura-Plastic. Information concerning its operation in June was as follows:
Master Budget units of Dura-Plastic to manufacture | 8,000 | ||||||||||||
Units of Dura-Plastic manufactured in June | 9,000 | ||||||||||||
Budgeted amount of EPP to purchase | 70,000 | oz. | |||||||||||
EPP material purchased | 76,000 | oz. | |||||||||||
EPP material used in production | 72,000 | oz. | |||||||||||
Standard cost of EPP used in production | $ | 478,800 | |||||||||||
Standard quantity of EPP per unit of Dura-Plastic | 7.5 | oz. | |||||||||||
Cost of EPP purchased | $ | 574,560 | |||||||||||
The direct materials usage (efficiency) variance for June, to the nearest dollar, was:
Multiple Choice
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$34,020 unfavorable.
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$26,600 unfavorable.
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$29,925 unfavorable.
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$13,300 unfavorable.
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