EXERCISE $10-1$ Direct Materials Variances LO$10-1$

Bandar Industries manufactures sporting equipment. One of the company's products is a football helmet that requires 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 $0\mathrm{.}6$ kilograms of plastic, at a cost of $$8$ per kilogram.

Required:

What is the standard quantity of kilograms of plastic $($SQ$)$ that is allowed to make $35,000$ helmets?

What is the standard materials cost allowed $(SQSP)$ to make $35,000$ helmets?

What is the materials spending variance?

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