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? newconnect.mheducation.com Illinois State University THE 154 001 SP2018- Introduction To Black Dra Accounting Solved: Logistics Solutions provides order fulfillment services... IChe... CH 10 HW 6 Saved Help Save & Exit Submit Check my work 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 35,000 helmets, using 22,500 kilograms of plastic. The plastic cost the company $171,000. 6 points According to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. Required 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 35,000 helmets? 2. What is the standard materials cost allowed (Sx SP) to make 35,000 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? eBook Hint Print (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 no round intermediate calculations.) References 1. Standard quantity of kilograms allowed 2. Standard cost allowed for actual output 3. Materials spending variance 4. Materials price variance Materials quantity variance Mc Graw Hill

Explanation / Answer

1. Standard quantity = 35000 * 0.60 kgs = 21000 kilograms

2. Standard material cost = 21000 * $8 = $168000

3. Material spending variance = Standard cost - Actual cost

= $168000 - $171000 = $3000 (U)

4. Material price variance = (Standard price - Actual price) * Actual quantity

= ($8 - ($171000/22500)) * 22500

= $180000 - $171000

= $9000(F)

Material quantity variance = (Standard quantity - Actual quantity) * Standard price

= (21000-22500) * $8

= $12000(U)

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