Dominic Company manufactures auto accessories. One of the companys products, an airbag that can be adjusted to fit in any size vehicle, requires a special plastic.

During the quarter ending June 30, the company manufactured 3,500 airbags, using 2,485 kilograms of plastic. The plastic cost the company $16,401.

According to the standard cost card, each airbag should require 0.63 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 3,500 airbags?

2. What is the standard materials cost allowed (SQ SP) to make 3,500 airbags?

3. What is the materials spending variance?

4. What is the materials price variance and the materials quantity variance?