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Question - Direct Materials Variances - Bandar Industries manufactures sporting equipment. One of the company's products is a football helmet that requires special plastic. During the quarter ending June 30, the company manufactured 3,700 helmets, using 2,701 kilograms of plastic. The plastic cost the company $17,827.
According to the standard cost card, each helmet should require 0.66 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 3,700 helmets?
2. What is the standard materials cost allowed (SQ x SP) to make 3,700 helmets?
3. What is the materials spending variance?
4. What is the materials price variance and the materials quantity variance?
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