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I cannot figure out why I keep getting the second part of the question wrong? Co

ID: 2524754 • Letter: I

Question

I cannot figure out why I keep getting the second part of the question wrong? Could someone offer some guidance?

Bandar Industrles Berhad or Malaysla manufactures sporting equipment. One or the company's products, a rootoall halmet for the North Amenican marke, requires a special plastc. Duing the quarter ending June 30, the company manufactured 3.000 helmets, using 1,680 kiograms of plastk. The plastic cost the company $14.448. nccording to the standard coet card, each helmel should require 0.5 kilograms of plastic, at a cost of 59 per klogram. Required: 3,000 0.5 1,500 Tolal standard kiograms alloed tandard coper kiogram Total standard cost ? 13.5102 14,448 13,500 S 548 l cost incurred Total standard cast Total material variance 2 Beak dorarn the dilompulext in (1) abiv ilo a mater als prie riand erias ality aa selecting "F" tor tavorable, "U" tor untavarabla, and "None-tor no ettgCt(LA., Zero var1?nc?H Round your actual materials price to two decimal places, and round your final answers to the nearest whole dollar. Indicate the offect of each variance by Materials price variance Matorils quantity variance

Explanation / Answer

1)

2) Material price variance = (9*1680-14448) = 672 F

Material quantity variance = (1500-1680)*9 = 1620 U

No of Helmet 3000 Standard quantity of plastic per helmet 0.50 Total standard kilograms 1500 Standard cost per kg 9 Total standard cost 13500 Actual cost incurred 14448 Total standard cost 13500 Total material variance 948 Unfavorable
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