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 4,000 helmets, using 2,840 kilograms of plastic. The plastic cost the company $18,744. According to the standard cost card, each helmet should require 0.66 kilograms of plastic, at a cost of $7.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 4,000 helmets? 2. What is the standard materials cost allowed (SQ SP) to make 4,000 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 (ie, zero variance). Input all amounts as positive values. Do not round intermediate calculations.) Standard quantity of kilograms allowed Standard cost allowed for actual output Materials spending variance Materials price variance Materials quantity variance
correct answers only please!

Answer 1

7 Per Kilo 0.66 kilos 2640 Kilos 4000 Helmets 2840 Kilos 2840 Kilos 6.60 Per Kilo AP Data Standard Price Standard quantity Per unit Standard Quantity for Actual Output Actual Output Actual Quantity Purchased AQP Actual Quanity Used AQ Actual Price of Material (18744/2840) Answers Standrad Quanity of kilograms Allowed Standard Cost allowed for Actula output Material Spending Variance (18840-18744) Mateial Price Variance (SP-AP)* AQ purchased =(7-6.60)*2840 Matrial Quanity Varaince (SQ-AQ)*SP=(2640-2840)*7 2640 0.66*4000 18480 2640*7 264 U 1136 F 1400 U