Norio Manufacturing Uses Powdered Plastics (PPS) to Manufacture a High-Pressure

question 66

Multiple Choice

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: 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 direct materials purchase-price variance (rounded to the nearest dollar) is:

• A) $51,840 favorable.
• B) $56,160 favorable.
• C) $62,208 favorable.
• D) $64,840 favorable.
• E) $72,000 favorable.

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Definitions:

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