Clear Manufacturing uses powdered plastics (PPS) to manufacture a high-pressure board used in a digital...
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Clear 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 June5,900Budgeted usage of PPS53,100poundsActual number of units of Flex 10 manufactured4,900PPS purchased and used48,000poundsTotal actual cost of PPS used$ 266,880Direct materials usage varianceunfavorable$ 28,860unfavorableClear does not maintain an inventory of materials, so the amount of materials used is equal to the amount of materials purchased. The actual purchase price per pound of PPS used is:
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