Direct Materials Variances LO101 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 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.

1.	Number of helmets................................................
	Number of kilograms of plastic per helmet.............	___
	Standard Kilograms allowed...................................
	Standard cost per Kilogram...................................	$____
	Total standard cost................................................	$______
	Actual cost incurred...............................................	$______
	Standard cost above..............................................	______
	Spending variance.................................................	$ ___
__

2.

Standard Quantity Allowed for Actual Output, at Standard Price (SQ SP)		Actual Quantity of Input, at Standard Price (AQ SP)		Actual Quantity of Input, at Actual Price (AQ AP)
______ kilograms $____ per Kilogram = $______		______ kilograms $____ per Kilogram = $______		$_______
	Materials quantity variance = $_____ __		Materials price variance = $_____ __
	Spending variance = $___ __

Alternatively, the variances can be computed using the formulas:

Materials quantity variance = SP (AQ SQ)

= $ _____per Kilogram (_______ Kilogram _____ Kilogram)

= $______ __

Materials price variance = AQ (AP SP)

= _____ Kilogram ($____ per Kilogram* $___ per Kilogram)

= $____ __

*$171,000 / 22,500 Kilogram = $____ per Kilogram.