Question
Direct Materials Variances Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet for the North American market, requires
Direct Materials Variances
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 quarter ending June 30, the company manufactured 35,000 helmets, using 22,500 kilograms of plastic. The plastic cost the company $171,000.
According to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram.
Required:
1. What is die standard quantity of kilograms of plastic (SQ) that is allowed to helmets?
2. What is the standard materials cost allowed (SQ x SP) to make 35,000 helmets?
3. What is the materials spending variance?
4 What are the materials price variance and the materials quantity variance?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started