Reference no: EM132930275
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 5,400
Budgeted usage of PPS 48,600pounds
Actual number of units of Flex 10 manufactured 4,400
PPS purchased 50,320 pounds
PPS used 43,000pounds
Total actual cost of PPS used$217,580
Direct materials usage variance$25,160 unfavorable
Problem 1: The cost of PPS in the flexible budget for the number of units manufactured this period (rounded to nearest dollar) is:
Multiple Choice
Option 1: -$372,368.
Option 2: -$399,600.
Option 3: -$359,640.
Option 4: -$309,320.