question archive Bandar Industries Berhad of Malaysia manufactures sporting equipment
Bandar Industries Berhad of Malaysia manufactures sporting equipment
Subject:AccountingPrice: Bought3
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 3,500 helmets, using 2,275 kilograms of plastic. The plastic cost the company $15,015.
According to the standard cost card, each helmet should require 0.58 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 3,500 helmets?
2)What is the standard materials cost allowed (SQ × SP) to make 3,500 helmets?
3) What is the materials spending variance?
4) What is the materials price variance and the materials quantity variance?
