Norio Manufacturing uses powdered plastics (PPS) to manufacture a high-pressure board used in a digital...
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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 June6,200Budgeted usage of PPS55,800poundsActual number of units of Flex 10 manufactured5,200PPS purchased65,520poundsPPS used51,000poundsTotal actual cost of PPS used$298,860Direct materials usage variance$32,760unfavorable
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:
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