Direct materials usage variance = (Actual quantity used * Standard price) - (Standard quantity * Standard price)
= [106,460 * ($798,450/106,460)] - [(10,900*9.4) * ($798,450/106,460)]
= $798,450 - $768,450
= $30,000 Unfavorable
Roncy Manufacturing uses enhanced powder plastics (EPP) to manufacture a high-pressure board, Dura-Plastic. Information concerning its...
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..................................6,500 Budgeted usage of PPS.................................................58,500 pounds Actual number of units of Flex 10 manufactured..................5,600 PPS purchased.............................................................72,000 pounds PPS used.....................................................................54,000 pounds Total actual cost of PPS used.......................................$332,640 Direct materials usage variance.....................................$36,000 unfavorable Assume that Norio does not maintain an inventory of materials, so that the amount of...
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 6,400 Budgeted usage of PPS 57,600 pounds Actual number of units of Flex 10 manufactured 5,400 PPS purchased 71,280 pounds PPS used 53,000 pounds Total actual cost of PPS used $ 321,180 Direct materials usage variance $ 35,640 unfavorable Assume that Norio does not maintain...