4

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 3,900 helmets, using 2,730 kilograms of plastic. The plastic cost the company $18.018 According to the standard cost card, each helmet should require 0.61 kilograms of plastic, at a cost of $7.00 per kilogram Required: 1. According to the standards, what cost for plastic should have been incurred to make 3.900 helmets? How much greater or loss is this than the cost that was incurred? (Round Standard kilograms of plastic per helmetto 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 for Materials price variance Materials quantity variance