Blaster, Inc., a manufacturer of portable radios, purchases the components from subcontractors to use to assemble into a complete radio.
Blaster, Inc., a manufacturer of portable radios, purchases the components from subcontractors to use to assemble
into a complete radio. Each radio requires three units each of Part XBEZ52, which has a standard cost of $1.45 per unit. During May, Blaster experienced the following with respect to Part XBEZ52:
Units
Purchases ($18,000)
12,000
Consumed in manufacturing
10,000
Radios manufactured
3,000
During May, Blaster incurred a purchase price variance of