3 Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet fo North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,900 helm using 2,613 kilograms of plastic. The plastic cost the company $19,859. According to the standard cost card, each helmet should require 0.60 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 3,900 helmets? 2. What is the standard materials cost allowed (SQ SP) to make 3,900 helmets? 3. What is the materials spending variance? 4 What is the materials price variance and the materials quantity variance?
3 Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet fo North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,900 helm using 2,613 kilograms of plastic. The plastic cost the company $19,859. According to the standard cost card, each helmet should require 0.60 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 3,900 helmets? 2. What is the standard materials cost allowed (SQ SP) to make 3,900 helmets? 3. What is the materials spending variance? 4 What is the materials price variance and the materials quantity variance?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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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 3,900 helmets,
using 2,613 kilograms of plastic. The plastic cost the company $19,859.
According to the standard cost card, each helmet should require 0.60 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 3,900 helmets?
2. What is the standard materials cost allowed (SQ x SP) to make 3,900 helmets?
3. What is the materials spending variance?
4. What is the materials price variance and the materials quantity variance?
(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.)
1.
2.
3.
14.
Standard quantity of kilograms allowed
Standard cost allowed for actual output
Materials spending variance
Materials price variance
Materials quantity variance
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