Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the companyâs 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 2,208 kilograms of plastic. The plastic cost the company $16,781.
According to the standard cost card, each helmet should require 0.61 kilograms of plastic, at a cost of $8.00 per kilogram.
Required:
1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,200 helmets?
2. What is the standard materials cost allowed (SQ Ã SP) to make 3,200 helmets?
3. What is the materials spending variance?
4. What is the materials price variance and the materials quantity variance?
Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the companyâs 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 2,208 kilograms of plastic. The plastic cost the company $16,781.
According to the standard cost card, each helmet should require 0.61 kilograms of plastic, at a cost of $8.00 per kilogram.
Required:
1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,200 helmets?
2. What is the standard materials cost allowed (SQ Ã SP) to make 3,200 helmets?
3. What is the materials spending variance?
4. What is the materials price variance and the materials quantity variance?
Related questions
Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the companyâs products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,500 helmets, using 2,555 kilograms of plastic. The plastic cost the company $19,418. According to the standard cost card, each helmet should require 0.65 kilograms of plastic, at a cost of $8.00 per kilogram. Required:
PART 1. According to the standards, what cost for plastic should have been incurred to make 3,500 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.)
| ||||||||||||||||||
| PART2. | 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).) | |||||||||||
| ||||||||||||
| Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the companyâs products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,700 helmets, using 2,553 kilograms of plastic. The plastic cost the company $16,850. |
| According to the standard cost card, each helmet should require 0.61 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 3,700 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.) |
| 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).) |
Bandar Industries Berhad of Malaysia manufactures sportingequipment. One of the company's products, a football helmet for thrNorth American market, requires special plastic. During the quaterending June 30, the company manufactured 70,000 helmets, using45,000kilograms of plastic in the process.The plastic cost thecompany RM342,000. (The in Malaysia is the ringgit, which isdenoted by RM)
According to the standard cost card, each helmet should require0.6 kilograms of plastic, at a cost of RM8 per kilogram.
Required:
1a. How much material in kilograms should havebeen used?
| Total standard kilograms allowed |
1b. What cost for plastic should have beenincurred in the manufacture of the 70,000 helmets?
| Total standard cost | RM |
1c. How much does this cost vary from what wasincurred? (Indicate the effects of each variance by selecting F forfavourable and U for unfavorable, and None for no effect-i.e zerovariance)
| Total material variance | RM |
2. Break the difference computed in part(1-b)into materials price variance and materials quality variance.(Indicate the effect of each variance by eslecting F for favorable,U for unfavorable and None for zero effect.)
| Material variance | RM | ||
| Material quality variance | RM |
