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 3,500 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. 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?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 3,500 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.
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?
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 3,500 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. 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?
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