Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the

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 3,400 helmets, using 2,584 killograms of plastic. The plastic cost the company $17,054 According to the standard cost card, each helmet should require 0.68 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 3,400 helmets? 2. What is the standard materials cost allowed (SQ SP) to make 3,400 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity varlance? (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 varience). Input all amounts as positive values. Do not round intermediate calculetions) nt 1Standard quantity of kilograms alowed 2 Standard cost allowed for actoal output 4 Materials price variance Matenals quanitity variance

Explanation / Answer

1) Standard quantity allowed = 3400*.68 = 2312 kg

2) Standard cost allowed = 2312*7 = 16184

3) Material spending variance = 16184-17054 = 870 U

4) Material price variance = (7*2584-17054) = 1034 F

Material quantity variance = (2312-2584)*7 = 1904 U

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