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 3,700 helmets, using 2,849 kilograms of plastic. The plastic cost the company $21,652. According to the standard cost card, each helmet should require 0.70 kilograms of plastic, at a cost of $8.00 per kilogram 10 points MG_01 eBook Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,700 helmets? 2. What is the standard materials cost allowed (SQ * SP) to make 3,700 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? Hint Print References (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.) 1. Standard quantity of kilograms allowed Standard cost allowed for actual output Materials spending variance Materials price variance Materials quantity variance

Answer 1

1	Standard quantity of kilograms allowed	2590		=3700*0.70
2	Standard cost allowed for actual output	20720		=2590*8
3	Materials spending variance	932	U	=21652-20720
4	Materials price variance	1140	F	=21652-(2849*8)
	Materials quantity variance	2072	U	=8*(2849-2590)