Question
Clark manufactures a special helmet that requires a special plastic. During the year ending December 31, the company manufactured 60,000 helmets, using 45,000 kilograms of
Clark manufactures a special helmet that requires a special plastic. During the year ending December 31, the company manufactured 60,000 helmets, using 45,000 kilograms of plastics. The actual plastic cost the company $342,000. According to the standard cost card, each helmet should require 0.8 kilograms of plastic, at a cost of $8 per kilogram. (1). According to the standard cost card, what cost for plastic should have been incurred to make 60,000 helmets? How much greater or less is this than the cost was actually incurred? (2). Breakdown the difference computed in (1) above into a materials price variance and a materials quantity variance
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