E9–1 Time allowed: 15 minutes 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 30 June, the company manufactured 35,000 helmets, using 22,500 kilograms of plastic in the process. The plastic cost the company RM 171,000. (The currency in Malaysia is the ringgit, which is denoted here by RM.)
According to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of RM 8 per kilogram.
Required 1 What cost for plastic should have been incurred in the manufacture of the 35,000 helmets? How much greater or less is this than the cost that was incurred?
2 Break down the difference computed in Question 1 above in terms of a materials price variance and a materials quantity variance.