Disney World uses powdered plastics (PPS) to manufacture a high-pressure board used in a digital...

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Accounting

Disney World 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 5,900
Budgeted usage of PPS 53,100 pounds
Actual number of units of Flex 10 manufactured 4,900
PPS purchased 57,720 pounds
PPS used 48,000 pounds
Total actual cost of PPS used $ 266,880
Direct materials usage variance $ 28,860 unfavorable

Assume that Disney recognizes the material purchase-price variance at the point of purchase. The direct materials purchase-price variance (rounded to the nearest dollar) is:

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