Reference no: EM132205489

Questions -

Q1. 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 3,800 helmets, using 3,002 kilograms of plastic. The plastic cost the company $19,813.

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. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,800 helmets?

2. What is the standard materials cost allowed (SQ × SP) to make 3,800 helmets?

3. What is the materials spending variance?

4. What is the materials price variance and the materials quantity variance?

Q2. Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below:

Standard Quantity or Hours Standard Price or Rate Standard Cost

Direct materials 6.30pounds $2.50per pound $15.75

Direct labor 0.50hours $10.50per hour $5.25

During the most recent month, the following activity was recorded:

1. Twelve thousand two hundred pounds of material were purchased at a cost of $2.40 per pound.

2. The company produced only 1,220 units, using 10,980 pounds of material. (The rest of the material purchased remained in raw materials inventory.)

3. 710 hours of direct labor time were recorded at a total labor cost of $8,520.

Required: Compute the materials price and quantity variances for the month.

Q3. SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 4,400 of these meals using 1,700 direct labor-hours. The company paid its direct labor workers a total of $17,000 for this work, or $10.00 per hour.

According to the standard cost card for this meal, it should require 0.40 direct labor-hours at a cost of $9.40 per hour.

Required:

1. What is the standard labor-hours allowed (SH) to prepare 4,400 meals?

2. What is the standard labor cost allowed (SH × SR) to prepare 4,400 meals?

3. What is the labor spending variance?

4. What is the labor rate variance and the labor efficiency variance?

Q4. Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below:

Standard Quantity or Hours Standard Price or Rate Standard Cost

Direct materials 6.40pounds $2.40per pound $15.36

Direct labor 0.25hours $11.50per hour $2.88

During the most recent month, the following activity was recorded:

1. Seventeen thousand five hundred pounds of material were purchased at a cost of $2.20 per pound.

2. All of the material purchased was used to produce 2,500 units of Zoom.

3. 475 hours of direct labor time were recorded at a total labor cost of $5,938.

Required:

1. Compute the materials price and quantity variances for the month.

2. Compute the labor rate and efficiency variances for the month.