Question 1: Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the companys products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,300 helmets, using 2,508 kilograms of plastic. The plastic cost the company $19,061.

According to the standard cost card, each helmet should require 0.70 kilograms of plastic, at a cost of $8.00 per kilogram.

Required:

1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,300 helmets?

2. What is the standard materials cost allowed (SQ SP) to make 3,300 helmets?

3. What is the materials spending variance?

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

question 2: SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the companys products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 3,500 of these meals using 950 direct labor-hours. The company paid its direct labor workers a total of $10,450 for this work, or $11.00 per hour.

According to the standard cost card for this meal, it should require 0.30 direct labor-hours at a cost of $9.50 per hour.

Required:

1. What is the standard labor-hours allowed (SH) to prepare 3,500 meals?

2. What is the standard labor cost allowed (SH SR) to prepare 3,500 meals?

3. What is the labor spending variance?

4. What is the labor rate variance and the labor efficiency variance?