Bandar Industries manufactures sporting equipment. One of the company's products is a football helmet that requires special plastic. During the quarter ending June 30, the company manufactured 3,200 helmets, using 2,144 kilograms of plastic. The plastic cost the company $16,294. 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 3,200 helmets? 2. What is the standard materials cost allowed (SQ \times SP) to make 3, 200 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance?
Bandar Industries manufactures sporting equipment. One of the company's products is a football helmet that requires special plastic. During the quarter ending June 30, the company manufactured 3,200 helmets, using 2,144 kilograms of plastic. The plastic cost the company $16,294. 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 3,200 helmets? 2. What is the standard materials cost allowed (SQ \times SP) to make 3, 200 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Bandar Industries manufactures sporting equipment. One of the company's products is a football helmet that requires
special plastic. During the quarter ending June 30, the company manufactured 3,200 helmets, using 2,144 kilograms of
plastic. The plastic cost the company $16,294. 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 3,200 helmets? 2. What is the standard materials cost allowed (SQ \times SP) to make 3, 200
helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity
variance?
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