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 PPS purchased and used 5,000 45,000 pounds 4,000 39,000 pounds Total actual cost of PPS used Direct materials usage variance $ 2,24,640 $ 21,600 unfavorable Clear does not maintain an inventory of materials, so the amount of materials used is equal to the amount of materials purchased. The cost of PPS in the flexible budget for the number of units manufactured this period is: a. $259,200. b. $280,800. c. $311,040. d. $324,000. e. $360,000.

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 PPS purchased and used 5,000 45,000 pounds 4,000 39,000 pounds Total actual cost of PPS used Direct materials usage variance $ 2,24,640 $ 21,600 unfavorable Clear does not maintain an inventory of materials, so the amount of materials used is equal to the amount of materials purchased. The cost of PPS in the flexible budget for the number of units manufactured this period is: a. $259,200. b. $280,800. c. $311,040. d. $324,000. e. $360,000.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 20E: Jameson Company produces paper towels. The company has established the following direct materials...

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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 12,000 Budgeted usage of PPS 108,000 pounds Actual number of units of Flex 10 manufactured 9,600 PPS purchased and used 93,600 pounds Total actual cost of PPS used $ 539,136 Direct materials usage variance $ 51,840 unfavorable Clear does not maintain an inventory of materials, so the amount of materials used is equal to the amount of materials purchased. The cost of PPS in the flexible budget for the number of units manufactured this period is:
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