Question
Direct Materials Variances Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the companys products, a football helmet for the North American Market, requires
Direct Materials Variances
Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the companys products, a football helmet for the North American Market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,200 helmets, using 2,304 kilograms of plastic. The plastic cost the company $ 17,510.
According to the standard cost card, each helmet should require 0.64 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 3,200 helmets?
2. What is the standard materials cost allowed (SQ X SP) to make 3,200 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.)
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1. | Standard quantity of kilograms allowed |
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2. | Standard allowed for actual output |
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3. | Material spending variance |
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4 | Material price variance |
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| Material quantity variance |
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