Chapter 8 Homeworkx C | ezto.mheducation.com/hm.tpx 18. we 0.50 points Bandar In
ID: 2568673 • Letter: C
Question
Chapter 8 Homeworkx C | ezto.mheducation.com/hm.tpx 18. we 0.50 points 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 3,100 helmets, using 1.984 kilograms of plastic The plastic cost the company $13,094 According to the standard cost card, each helmet should require 057 kilograms of plastic, at a cost of $7 00 per kilogram. Required: 1. According to the standards, what cost for plastic should have been incured to make 3,100 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 Standard kilograms of plastic per helmet Total standard kilograms allowed Standard cost per kilogram Total standard cost Actual cost incurred Total standard cost Total material variance-unfavorable 2. Break down the difference computed in (1) above into a materials price variance and a materials Indicate the effect of each variance by selecting F for favorable, "U for unfavorable, and "None for no effect (i.e., zero variance).) Materials price variance Materials quantity variance earchExplanation / Answer
1 Number of helmets 3100 Standard kilograms of plastic per helmet . 0.57 Total standard kilograms allowed 1767 Standard cost per kilogram 7 Total standard cost 12369 Actual cost incurred 13094 Total standard cost 12369 Total material variance-unfavorable 725 2 Materials price variance = 13094-(1984*7)= 794 Favorable Materials quantity variance = 7*(1984-1767)= 1519 Unfavorable