Clear Manufacturing uses powdered plastics (PPS) to manufacture a high-pressure board used in a digital equipment product, Flex 10. Information conce follows: Budgeted units of Flex 10 for June Budgeted usage of PPS Actual number of units of Flex 10 manufactured PPS purchased and used Total actual cost of PPS used Direct materials usage variance 12,000 108,000 pounds 9,600 93,600 pounds $ 539,136 $ 51,840 unfavorable

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 14CE: Refer to Cornerstone Exercise 8.13. In March, Nashler Company produced 163,200 units and had the...
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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 June
Budgeted usage of PPS
Actual number of units of Flex 10 manufactured
12,000
108,000 pounds
9,600
93,600 pounds
PPS purchased and used
Total actual cost of PPS used
Direct materials usage variance
Clear does not maintain an inventory of materials, so the amount of materials used is equal to the amount of materials purchased. The direct materials purchase-price variance is:
$ 539,136
$ 51,840 unfavorable
Transcribed Image Text: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 Budgeted usage of PPS Actual number of units of Flex 10 manufactured 12,000 108,000 pounds 9,600 93,600 pounds PPS purchased and used Total actual cost of PPS used Direct materials usage variance Clear does not maintain an inventory of materials, so the amount of materials used is equal to the amount of materials purchased. The direct materials purchase-price variance is: $ 539,136 $ 51,840 unfavorable
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