Reference no: EM132930278

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 6,300

Budgeted usage of PPS 56,700 pounds

Actual number of units of Flex 10 manufactured 5,300

PPS purchased 70,520 pounds

PPS used 52,000 pounds

Total actual cost of PPS used$309,920

Direct materials usage variance$35,260 unfavorable

Problem 1: Assume that Norio recognizes the material purchase-price variance at the point of purchase. The direct materials purchase-price variance (rounded to the nearest dollar) is:

Multiple Choice

Option 1: -$86,036 favorable.
Option 2: -$157,965 favorable.
Option 3: -$80,693 favorable.
Option 4: -$69,136 favorable.
Option 5: -$103,320 favorable.