having trouble with the bottom part. Bandar Industries Berhad of Malaysia manufa
ID: 2527543 • Letter: H
Question
having trouble with the bottom part.
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 3,200 helmets, using 2,048 kilograms of plastic. The plastic cost the company $13,517 According to the standard cost card, each helmet should require 0.56 kilograms of plastic, at a cost of $7.00 per kilogram. Required: 1. According to the standards, what cost for plastic should have been incurred to make 3,200 helmets? How much greater or less is this than the cost that was incurred? (Round Standard kilograms of plastic per helmet to 2 decimal places.) Number of helmets Standard kilograms of plastic per helmet Total standard kilograms allowed Standard cost per kilogram Total standard cost Actual cost incurred Total standard cost Total material va 3,200 0.56 1,792 $7.00 $ 12,544 13,517 12,544 $97;3 avorable 2. Break down the difference computed in (1) above into a materials price variance and a materials quantity variance. (Round your actual materials price to two decimal places, and round your final answers to the nearest whole dollar. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect i.e., zero variance).) Materials price variance Materials quantity varianceExplanation / Answer
Material price variance = (Standard rate-actual rate)actual quantity
= (7*2048-13517)
Material price variance = 819 F
Material quantity variance = (Standard quantity-actual quantity)Standard rate
= (1792-2048)*7
Material quantity variance = 1792 U
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