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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.
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 the company manufactured helmets, using kilograms of plastic in the process. The plastic cost the company RMThe currency in Malaysia is the ringgit, which is denoted here by RM
According to the standard cost card, each helmet should require kilograms of plastic, at a cost of RM per kilogram.
Required:
a How much material in kilograms should have been used?
Total standard kilograms allowed
b What cost for plastic should have been incurred in the manufacture of the helmets?
tableTotal standard cost,RM
c How much does this cost vary from what was incurred? Indicate the effect of each variance by selecting F for favourable, U for unfavourable, and "None" for no effect ie zero variance
Total material variance
RM
Break the difference computed in part b into a materials price variance and a materials quantity variance. Indicate the effect of each variance by selecting F for favourable, U for unfavourable, and "None" for no effect ie zero variance
tableMaterials price variance,RMMaterials quantity variance,RM
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