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 3,400 helmets, using 2,448 kilograms of plastic. The plastic cost the company $18,605.According to the standard cost card, each helmet should require 0.64 kilograms of plastic, at a cost of $8.00 per kilogram.Required:What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,400 helmets?What is the standard materials cost allowed (SQ × SP) to make 3,400 helmets?What is the materials spending variance?What is the materials price variance and the materials quantity variance?Note: For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. 1. Standard quantity of kilograms allowed2. Standard cost allowed for actual output3. Materials spending variance4. Materials price variance4. Materials quantity variance

1. Standard Quantity of Kilograms Allowed = Standard Qty required for each helmet x Number of Actual…

Answered: What is the standard quantity of…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 13MC: When is the labor rate variance unfavorable? A. when the actual quantity used is greater than the...

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Required:

What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,400 helmets?
What is the standard materials cost allowed (SQ × SP) to make 3,400 helmets?
What is the materials spending variance?
What is the materials price variance and the materials quantity variance?
Note: For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.

1. Standard quantity of kilograms allowed
2. Standard cost allowed for actual output
3. Materials spending variance
4. Materials price variance
4. Materials quantity variance

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

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