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I need the second part answered as I already have the first part figured out. Please help me figure out the materials price variance and
I need the second part answered as I already have the first part figured out. Please help me figure out the materials price variance and the materials quantity variance.
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 3,900 helmets, using 2,301 kilograms of plastic. The plastic cost the company $17,488. According to the standard cost card, each helmet should require 0.54 kilograms of plastic, at a cost of $8.00 per kilogram. Required: 1. According to the standards, what cost for plastic should have been incurred to make 3,900 helmets? How much greater or less is this than the cost that was incurred? (Round Standard kilograms of plastic per helmet to 2 decimal places.) Number of helmets 3,900 Standard kilograms of plastic per helmet 0.54 Total standard kilograms allowed 2,106 Standard cost per kilogram 8.00 16,848 Total standard cost Actual cost incurred 17,488 16,848 Total standard cost Total material variance-unfavourable 640Step by Step Solution
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