Question

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 June		6,000
Budgeted usage of PPS		54,000	pounds
Actual number of units of Flex 10 manufactured		5,000
PPS purchased		61,600	pounds
PPS used		49,000	pounds
Total actual cost of PPS used	$	277,340
Direct materials usage variance	$	30,800	unfavorable

Assume that Norio does not maintain an inventory of materials, so that 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 (rounded to nearest dollar) is:

Multiple Choice

• $346,500.

• $354,200.

• $474,320.

• $415,800.

• $462,000.

Answer 1

Answer wtih working is given below