Norio Manufacturing uses powdered plastics (PPS) to manufacture a high-pressure board used in digital equipment, Flex 10.
Question:
Norio Manufacturing uses powdered plastics (PPS) to manufacture a high-pressure board used in digital equipment, Flex 10. Information concerning its operation in June is as follows:
Budgeted units of Flex 10 for June…………………………………………….5,600
Budgeted usage of FPS…………………………………………………………….51,500 pounds
Number of units of Flex 10 manufactured………………………………..4,500
PFS purchased………………………………………………………………………...48,690 pounds
PFS used………………………………………………………………………………….44,600 pounds
Total actual cost of FPS used………………………………………………$250,390
Direct materials usage variance – unfavorable…………………….$23,780
The cost of PPS in the flexible budget for the number of units manufactured this period is:
$329,778
$273,352
$250,390
$305,998
$289,879Cornerstones of Managerial Accounting
ISBN: 978-0176530884
2nd Canadian edition
Authors: Maryanne M. Mowen, Don Hanson, Dan L. Heitger, David McConomy, Jeffrey Pittman