Exercise 10-1 (Algo) Direct Materials Variances (LO10-1) 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 3,700 helmets, using 2,331 kilograms of plastic. The plastic cost the company $15,385. 0.7 points According to the standard cost card, each helmet should require 0.53 kilograms of plastic, at a cost of $7.00 per kilogram. Skipped Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,700 helmets? 2. What is the standard materials cost allowed (SQ SP) to make 3,700 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? eBook References (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) 1. Standard quantity of kilograms allowed 2. Standard cost allowed for actual output 3. Materials spending variance 4. Materials price variance 4. Materials quantity variance Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: 3 Standard Hours 27 minutes Standard Rate per Hour $ 6.20 Standard Cost $ 2.79 0.7 points During August, 9,580 hours of direct labor time were needed to make 19,800 units of the Jogging Mate. The direct labor cost totaled $58,438 for the month. eBook References Required: 1. What is the standard labor-hours allowed (SH) to makes 19,800 Jogging Mates? 2. What is the standard labor cost allowed (SH SR) to make 19,800 Jogging Mates? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.30 per direct labor-hour. During August, the company incurred $45,984 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. (For requirements 3 through 5, 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.) 1. Standard labor-hours allowed 2. Standard labor cost allowed 3. Labor spending variance 4. Labor rate variance 4. Labor efficiency variance 5. Variable overhead rate variance
