TWO THREE work, Ch 10 Bandar Industries Berha North American market, requires a
ID: 2519411 • Letter: T
Question
TWO
THREE
work, Ch 10 Bandar Industries Berha North American market, requires a special plastic. During the quarter ending June 30, th using 2.405 kilograms of plastic. The plastic cost the company $18,278. d of Malaysla manufactures sporting equipment. One of the company's products, a football helmet for the e company manufactured 3,700 helmets, According to the standard cost card, each helmet should require 0.56 kilograms of plastic at a cost of $8.00 per klogram. Re 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3.700 helmets? 2. What is the standard materials cost allowed (SQ SP) to make 3,700 helmets? 3. What is the materials spending varlance? 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 "F for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations) of k 2.0 2Standard cost allowed for actual output16.576 1,702 370 of 11EE Next >
Explanation / Answer
Actual output: 3700 units Std qty allowed per unit of output: 0.56 kg Std quantity alowed (0.56*3700): 2072 Std price per Kg: $ 8 per hkg Actual quantity used: 2405 ks Actual price perkg (18278/2405): $ 7.60 pere kg Req 1: Std quantity allowed (3700 units *0.56): 2072 kgs Req 2: Std material cost = Std quantity* Std price =2072*8 = $ 16576 Req3: materiala speding variance = Std cost - Budgeted cost 16576-18278 = $ 1702 U Req 4: material price variance = Actual qty (Std price-actual price) 2405 (8.00-7.60) = 962 F Material Quantity variance= Std price (Std qty-Actual qty) 8 (2072-2405) = 2664 U
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