Clear Manufacturing uses powdered plastics (PPS) to manufacture a high-pressure board used in a digital...

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Accounting

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 June 5,400
Budgeted usage of PPS 48,600 pounds
Actual number of units of Flex 10 manufactured 4,400
PPS purchased and used 43,000 pounds
Total actual cost of PPS used $ 217,580
Direct materials usage varianceunfavorable $ 25,160 unfavorable
Clear 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:
Multiple Choice
$8.65.
$5.06.
$6.52.
$6.15.
$7.40.

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