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 3,700 helmets, using 2,553 kilograms of plastic. The plastic cost the company $19,403. 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. 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.) Number of helmets Standard kilograms of plastic per helmet Total standard kilograms allowed Standard cost per kilogram Total standard cost Actual cost incurred Total standard cost Total material variance-unfavorable $ 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 (l.e., zero variance).) Materials price variance Materials quantity variance $ 67 1,021 U
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 3,700 helmets, using 2,553 kilograms of plastic. The plastic cost the company $19,403. 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. 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.) Number of helmets Standard kilograms of plastic per helmet Total standard kilograms allowed Standard cost per kilogram Total standard cost Actual cost incurred Total standard cost Total material variance-unfavorable $ 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 (l.e., zero variance).) Materials price variance Materials quantity variance $ 67 1,021 U
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 3,700 helmets,
using 2,553 kilograms of plastic. The plastic cost the company $19,403.
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. 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.)
Number of helmets
Standard kilograms of plastic per helmet
Total standard kilograms allowed
Standard cost per kilogram
Total standard cost
Actual cost incurred
Total standard cost
Total material variance-unfavorable
$
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).)
Materials price variance
$
1,021 T
Materials quantity variance
U
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