a football helmet for the American market, requires a special plastic. During th

Question

a football helmet for the American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,500 helmets, Malaysia manufactures sporting North using 2.660 kilograms of plastic. The plastic cost the company $22,876 According to the standard cost card, each helmet should require 0.67 kilograms of plastic, at a cost of $9.00 per kilogram. ped Required: 1. 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 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? (SQ x SP) to make 3,500 helmets? no effect (i., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) of 3. Materials 1 of 3

Explanation / Answer

Req 1: Std quantity allowed per unit of output: 0.67 kilo Actual output:3500 helmets Std allowed for actual output (3500 unis@0.67 kilos): 2345 Kilos Req 2: Std pricec per kilo: $ 9 per kilo Std Quantity allowed for actual output: 2345 kios Std material cost for actual output:(2345 kilos @ $9 per kilo): $21,105 Req 3: Material Spending Variance: Std material cost for actual output - Actual material ccost $ 21,105 - 22,876 = $ 1,771 U Req 4: Actual quantity consumed:2660 kilos Actual pirce per kilo (22876/2660): $ 8.60 per kilo Material Price Varaince: Actual Quantity (Std price-Actual Price) 2660 kilos (9.00-8.60) = $ 1064 F Material Quantity Variance= Std price (Std quantity-Actual Quantity) 9.00 (2345 - 2660) = $2835 U

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