a

b

Exercise 10-1 (Algo) Direct Materials Variances (L010-1) 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 3,500 helmets, using 2.590 kilograms of plastic. The plastic cost the company $19,684 According to the standard cost card, each helmet should require 0.68 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 3,500 helmets? 2. What is the standard materials cost allowed (SQ SP) to make 3,500 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) 1. Standard quantity of kilograms allowed 2. Standard cost allowed for actual output 3. Materials spending variance 4. Materials price variance 4. Materials quantity variance Exercise 10-8 (Algo) Direct Materials and Direct Labor Variances (LO10-1, LO10-2) Dawson Toys, Limted, produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.33 per micron Direct labor: 1.3 hours per toy at $740 per hour During July, the company produced 4,700 Maze toys. The toy's production data for the month are as follows: Direct materials. 76,000 microns were purchased at a cost of $0.29 per micron. 34,875 of these microns were still in inventory at the end of the month Direct labor. 6,510 direct labor-hours were worked at a cost of $50,127, Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations, Round final answer to the nearest whole dollar amount.) a. The materials price and quantity variances b. The labor rate and efficiency variances 1a. Material price variance 1a. Material quantity variance 1b. Labor rate variance 16. Labor efficiency variance