Help Save&Exit; Submit Check my work Bandar Industries Berhad of Malaysia manufa

Question

Help Save&Exit; Submit Check my work Bandar Industries Berhad of Malaysia manufactures sporting equipment One of the company's products, a footbal helmet for the North American market, requires a special plastic. Duning the quarter ending June 30, the company manufactured 3,100 helmets using 2,356 kilograms of plastic. The plastic cost the company $15,550 According to the standard cost card, each helmet should require 0.68 kilograms of plastic, at a cost of $700 per kilogram. 4s Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3300 helmets? 2. What is the standard materials cost allowed (SQ SP) to make 3,100 helmets? 3. What is the materials spending variance? 4 What is the materials price variance and the materials quantity variance? For requirements 3 and 4, indicate the effect of each variance by selecting "P for favorable, "U" for unfavorable, and "None" nes for no effect (i.e, zero variance). Input all amounts as positive values. Do not round intermediate calculations. quantity of 2 Standard cost allowed for actual output 3. Materia's spending variance Materials quantity variance

Explanation / Answer

1

Standard quantity of kilograms allowed
(Actual units*standard quantity required per unit)
(3,100*0.68)

                2,108

               2

Standard cost allowed for actual output
(Standard quantity required* rate per kg) =(2,108*$7)

$14,756

3

Material spending variance =(SQ*SP-AQ*AP)
(2,108*$7-$15,550)

                  (794)

Unfavourable

4

Material Price variance = (SP-AP)*AQ
($7-(15550/2,356))*2356

942

Favourable

               5

Material usage variance =(SQ-AQ)*SP
(2,108-2,356)*$7

-1736

Unfavourable

SQ= Standard Quantity

SP = Standard price

AQ = Actual Quantity

AP = Actual price

1

Standard quantity of kilograms allowed
(Actual units*standard quantity required per unit)
(3,100*0.68)

                2,108

               2

Standard cost allowed for actual output
(Standard quantity required* rate per kg) =(2,108*$7)

$14,756

3

Material spending variance =(SQ*SP-AQ*AP)
(2,108*$7-$15,550)

                  (794)

Unfavourable

4

Material Price variance = (SP-AP)*AQ
($7-(15550/2,356))*2356

942

Favourable

               5

Material usage variance =(SQ-AQ)*SP
(2,108-2,356)*$7

-1736

Unfavourable

SQ= Standard Quantity

SP = Standard price

AQ = Actual Quantity

AP = Actual price

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