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 3,800 nelmets, using 2,394 kilograms of plastic. The plastic cost the company $15,800. According to the standard cost card, each helmet should require 0.56 kilograms of plastic, at a cost of $7.00 per kilogram. Requlred: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,800 helmets? 2 What is the standard materials cost allowed (SQ x SP) to make 3,800 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? (For requlrements 3 and 4, Indlicate the effect of each varlanee by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts es positive values. Do not round Intermedlate calculations.) 1. Standard quantity of kilograms allowed 2. Standard cost allowed for actual output 3. Materials spending variance 4. Materials price variance Materials quantity variance

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 3,800 nelmets, using 2,394 kilograms of plastic. The plastic cost the company $15,800. According to the standard cost card, each helmet should require 0.56 kilograms of plastic, at a cost of $7.00 per kilogram. Requlred: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,800 helmets? 2 What is the standard materials cost allowed (SQ x SP) to make 3,800 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? (For requlrements 3 and 4, Indlicate the effect of each varlanee by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts es positive values. Do not round Intermedlate calculations.) 1. Standard quantity of kilograms allowed 2. Standard cost allowed for actual output 3. Materials spending variance 4. Materials price variance Materials quantity variance

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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