CH 10.1

Bandar Industries manufactures sporting equipment. One of the companys products is a football helmet that requires special plastic. During the quarter ending June 30, the company manufactured 3,900 helmets, using 2,964 kilograms of plastic. The plastic cost the company $19,562.

According to the standard cost card, each helmet should require 0.66 kilograms of plastic, at a cost of $7.00 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?

1. 2. 3. Standard quantity of kilograms allowed Standard cost allowed for actual output Materials spending variance Materials price variance Materials quantity variance 4