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.

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: 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.

Quizplus · Accepted Answer

The Answer 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: 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.

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