Reference no: EM132482744
Question - 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 2,812 kilograms of plastic. The plastic cost the company $21,371.
According to the standard cost card, each helmet should require 0.68 kilograms of plastic, at a cost of $8.00 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?
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