Question

Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,300 helmets, using 2,475 kilograms of plastic. The plastic cost the company $18,810. According to the standard cost card, each helmet should require 0.66 kilograms of plastic, at a cost of $8.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,300 helmets? 2. What is the standard materials cost allowed (SQ x SP) to make 3,300 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) Standard quantity of kilograms allowed 2 1. Standard cost allowed for actual output ces 3 Materials spending variance Materials price variance Materials quantity varlance 4. 3 of 5 Prex Next

Answer 1

Porticulors. Istd. quantity of Kilograms allowed std Cost allowed for Act of output Material spending vorlance Material Price voriance Materi of quantity vortance Amount 2178 Kg. $17424 $1886 A $990F $237GA colaulations std quantity of Kgs.ollowed = std quantity perheits Actol Production Cin units) = 0 666 3300 = 2178 kg. . Std cost allowed boo Actual output = (SOX SP)x Actual Production = (0.66X 8) x 3300 = $17424 ③ Material spending vociance Maturid spending vorlance = Actuat costa std cost = 18810-17424 = $1386 Adverse

W Material Price voriance Actual quantity Material Price voriance = (std cost - Actuof cost X =(8-7.6) x 2475 = $990 Favourable. ③ maturiol guantity Vorjance. Perunit Materid quantity voriance = (std. aty. - Actualityx std Price = (0.75-0.66)x 8 = $0.72 per unit Adresse so For 3300 units of prodestion Maturiol aty. Vorjance - 0.72X3300 = $2376 Adverse