ar 13- Homework -10-1, 102-50 points Check my work for the Bandar Industries Ber

Question

ar 13- Homework -10-1, 102-50 points Check my work for the Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the companys products, a North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,500 helmets, using 2,275 kilograms of plastic. The plastic cost the company $17,290 According to the standard cost card, each helmet should require 0.59 kilograms of plastic, at a cost of $8.00 per kilogram. ts Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,500 helmets? 2 what is the standard materials cost allowed (SQ × SP) to make 3,500 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? Hint (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 yalues. Do not round intermediate calculations.) variance Prey 1012 iii Next >

Explanation / Answer

Solution:

1. Standard quantity of kilogram of plastic allowed to make 3500 helmets (SQ) = 3500 * 0.59 = 2065 Kilogram

2. Standard material cost allowed to make 3500 helmets = SQ * SP = 2065 * $8 = $16,520

3. Material spending variance = Standard material cost - Actual material cost = $16,520 - $17,290 = $770U

4. Actual quantity of plastic (AQ) = 2275 Kg

Actual price of plastic (AP) = $17,290 / 2275 = $7.60 per Kg

Material price variance = (SP - AP) * AQ = ($8 - $7.60) * 2275 = $910F

Material Quantity Variance = (SQ - AQ) * SP = (2065 - 2275)* $8 = $1,680 U

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