Materials price variance and materials quantity variance

Assignment Help Financial Accounting

Reference no: EM13828577

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 3,600 helmets, using 2,772 kilograms of plastic. The plastic cost the company $18,295.

According to the standard cost card, each helmet should require 0.69 kilograms of plastic, at a cost of $7.00 per kilogram.

Required:

1. According to the standards, what cost for plastic should have been incurred to make 3,600 helmets? How much greater or less is this than the cost that was incurred?

2. Break down the difference computed in (1) above into a materials price variance and a materials quantity variance.

Reference no: EM13828577

Questions Cloud

What would the companys residual income for the year : Juniper Design Ltd. of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of $460,000 on sales of $1,900,000. What would the company's residual income ..

Companys profit of losses reported in the annual report : Provide a brief overview of their history and it's significant business activities. What was the company's profit of losses reported in the annual report? Provide profit/loss for all three income statements. what are the two largest assets and two la..

Reflective journal about organizational wellness : Write a Reflective Journal about Organizational Wellness

Creation of a marketing plan for an organisation : You will be working, through the creation of a marketing plan for an organisation of Your choice. The marketing plan will be developed during the course of the of the lectures, each with element of the marketing plan constructed by applying the th..

Materials price variance and materials quantity variance : 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. According to the standards, what cost for plastic should have been incur..

Define and explain hydrogen bonding : Define and explain hydrogen bonding. List and discuss the properties of water and explain the role that hydrogen bonding plays in the properties.

Explain macromolecules using characteristics of life : Explain macromolecules using characteristics of life?

Discuss the pros and cons of a matrix organization : Discuss the pros and cons of a matrix organization for project management. As a project manager, what types of things would you need to do well in order for your project to work within a matrix organization

Biological basis.describe the technology : Biological basis.Describe the technology. Discuss what it accomplishes. Elaborate on the scientific principles that make this technology possible. Your goal in this section of the paper is to show the instructor that you understand the underlying sci..

User Account

All Pages