Question

Assignment 9-1 Week 9 Practice A Saved 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 3,600 helmets, using 2,160 kilograms of plastic. The plastic cost the company $16,416. points According to the standard cost card, each helmet should require 0.54 kilograms of plastic, at a cost of $8.00 per kilogram. eBook Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3.600 helmets? 2. What is the standard materials cost allowed (SQ - SP) to make 3,600 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.) Standard quantity of kilograms allowed Standard cost allowed for actual output | $ Materials spending variance $ Materials price variance Materials quantity variance 8 3,600

Answer 1

1	1944 kgs
2	$15,552
3	Materials spending variance	(Standard Price - Actual Price) * Actual Quantity purchase
		[$8.00 - $7.60] x 2,160 kgs
		$864.00	favorable
4	Materials price variance	(Standard Price - Actual Price) * Actual Quantity
		[$8.00 - $7.60] x 2,160 kgs
		$864.00	favorable
	Materials quantity variance	(Standard Quantity - Actual Quantity ) * Standard Rate
		[(3,600 x 0.54) - 2,160] x $8.00
		$1,728.00	unfavorable