Novis 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		5,000
Budgeted usage of PPS		45,000	pounds
Actual number of units of Flex 10 manufactured		4,000
PPS purchased		43,200	pounds
PPS used		39,000	pounds
Total actual cost of PPS used	$	224,640
Direct materials usage variance—unfavorable	$	21,600	unfavorable

A.  Assume that Novis does not maintain an inventory of materials, so that the amount of materials used is equal to the amount of materials purchased. The actual purchase price per pound of PPS used (rounded to two decimal places) is:

                                                                                                                                 _______________

B.  Assume that Novis does not maintain an inventory of materials, so that the amount of materials used is equal to the amount of materials purchased. The standard cost per pound of PPS (to two decimal places) is:

                                                                                                                                 _______________

C.  Assume that Novis does not maintain an inventory of materials, so that the amount of materials used is equal to the amount of materials purchased. The direct materials purchase-price variance (rounded to the nearest dollar) is:

                                                                                                                                 _______________

D.  Assume that Novis 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:

Answer rating: 100% (QA)

a Actual purchase price per pound of PPS AP22464039000 576 b Direct materials usage var... View the full answer