### Cost Analysis of Plastic Usage for Sporting EquipmentBandar 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 3,700 helmets, using 2,516 kilograms of plastic. The plastic cost the company $19,122.According to the standard cost card, each helmet should require 0.59 kilograms of plastic at a cost of $8.00 per kilogram.### Required Calculations1. **Standard Quantity of Kilograms of Plastic (SQ) for 3,700 Helmets:** Calculate the total kilograms of plastic allowed based on the standard quantity per helmet. 2. **Standard Materials Cost Allowed (SQ × SP) to Make 3,700 Helmets:** Calculate the total standard cost allowed using the standard price (SP) per kilogram.3. **Materials Spending Variance:** Determine the variance by comparing the actual cost to the standard cost allowed.4. **Materials Price Variance and Materials Quantity Variance:** Analyze variances due to differences in price or quantity.**Note:** For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect. Input all amounts as positive values. Do not round intermediate calculations.### Data Table| | ||---|---|| **1.** | **Standard Quantity of Kilograms Allowed** | || **2.** | **Standard Cost Allowed for Actual Output** | || **3.** | **Materials Spending Variance** | || **4.** | **Materials Price Variance** | || **5.** | **Materials Quantity Variance** | |

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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