1. Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the companys products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,900 helmets, using 2,457 kilograms of plastic. The plastic cost the company $18,673.According to the standard cost card, each helmet should require 0.57 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 3,900 helmets?

2. What is the standard materials cost allowed (SQ SP) to make 3,900 helmets?

3. What is the materials spending variance?

4. What is the materials price variance and the materials quantity variance?

2. SkyChefs, Incorporated, prepares in-flight meals for a number of major airlines. One of the companys products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 7,200 of these meals using 2,800 direct labor-hours. The company paid its direct labor workers a total of $22,400 for this work, or $8.00 per hour. According to the standard cost card for this meal, it should require 0.40 direct labor-hours at a cost of $7.50 per hour.

Required:

1. What is the standard labor-hours allowed (SH) to prepare 7,200 meals?

2. What is the standard labor cost allowed (SH SR) to prepare 7,200 meals?

3. What is the labor spending variance?

4. What is the labor rate variance and the labor efficiency variance?

3.

Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a client receives an order from a customer, the order is forwarded to Logistics Solutions, which pulls the item from storage, packs it, and ships it to the customer. The company uses a predetermined variable overhead rate based on direct labor-hours. In the most recent month, 115,000 items were shipped to customers using 3,800 direct labor-hours. The company incurred a total of $10,450 in variable overhead costs. According to the companys standards, 0.04 direct labor-hours are required to fulfill an order for one item and the variable overhead rate is $2.80 per direct labor-hour.

Required:

1. What is the standard labor-hours allowed (SH) to ship 115,000 items to customers?

2. What is the standard variable overhead cost allowed (SH SR) to ship 115,000 items to customers?

3. What is the variable overhead spending variance?

4. What is the variable overhead rate variance and the variable overhead efficiency variance?