Exerclse $9-4($Algo$)$ Direct Materlals Varlances $[$LO$9-4]$

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 the quarter ending June $30,$ the company manufactured $3,500$ helmets,

using $2,660$ kilograms of plastic. The plastic cost the company $$17,556.$

According to the standard cost card, each helmet should require $0\mathrm{.}67$ kilograms of plastic, at a cost of $$7\mathrm{.}00$ per kilogram.

Requlred:

What is the standard quantity of kilograms of plastic $(SQ)$ that is allowed to make $3,500$ helmets?

$2$ What is the standard materials cost allowed $(SQSP)$ to make $3,500$ helmets?

What is the materials spending variance?

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

$($For requlrements $3$ and $4,$ Indleate the effect of each varlance by selecting $"$F$"$ for favorable, $"$U$"$ for unfovorable, and "None" for

no effect $($l$.$e$.,$ zero varlence$).$ Input all amounts as positlve values. Do not round Intermedlete calculatlons.$)$