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Tunable manufacturing overhead cost would be included in the company's planning budget for March? What variable manufacturing overhead cost would be included in the company's flexible 13. budget for March? What is the variable overhead rate variance for March? What is the variable overhead efficiency variance for March? 14. 15. connect |ACCOUNTING All applicable exercises are available with McGraw-Hill's Connect® Accounting. EXERCISE 10-1 Direct Materials Variances [LO10-1] 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 35,000 helmets, using 22,500 kilograms of plastic. The plastic cost the company $171,000. Standard Costs and Variances According to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. Required: 1. According to the standards, what cost for plastic should have been incurred to make 35,000 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 mate- rials quantity variance.

Tunable manufacturing overhead cost would be included in the company's planning budget for March? What variable manufacturing overhead cost would be included in the company's flexible 13. budget for March? What is the variable overhead rate variance for March? What is the variable overhead efficiency variance for March? 14. 15. connect |ACCOUNTING All applicable exercises are available with McGraw-Hill's Connect® Accounting. EXERCISE 10-1 Direct Materials Variances [LO10-1] 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 35,000 helmets, using 22,500 kilograms of plastic. The plastic cost the company $171,000. Standard Costs and Variances According to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. Required: 1. According to the standards, what cost for plastic should have been incurred to make 35,000 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 mate- rials quantity variance.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 7CE: Variances Refer to Cornerstone Exercise 9.6. Required: 1. Calculate the variable overhead spending...
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Tunable manufacturing overhead cost would be included in the company's planning budget for March? What variable manufacturing overhead cost would be included in the company's flexible 13. budget for March? What is the variable overhead rate variance for March? What is the variable overhead efficiency variance for March? 14. 15. connect |ACCOUNTING All applicable exercises are available with McGraw-Hill's Connect® Accounting. EXERCISE 10-1 Direct Materials Variances [LO10-1] 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 35,000 helmets, using 22,500 kilograms of plastic. The plastic cost the company $171,000.
Transcribed Image Text:Tunable manufacturing overhead cost would be included in the company's planning budget for March? What variable manufacturing overhead cost would be included in the company's flexible 13. budget for March? What is the variable overhead rate variance for March? What is the variable overhead efficiency variance for March? 14. 15. connect |ACCOUNTING All applicable exercises are available with McGraw-Hill's Connect® Accounting. EXERCISE 10-1 Direct Materials Variances [LO10-1] 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 35,000 helmets, using 22,500 kilograms of plastic. The plastic cost the company $171,000.
Standard Costs and Variances According to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. Required: 1. According to the standards, what cost for plastic should have been incurred to make 35,000 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 mate- rials quantity variance.
Transcribed Image Text:Standard Costs and Variances According to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. Required: 1. According to the standards, what cost for plastic should have been incurred to make 35,000 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 mate- rials quantity variance.
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