Concept explainers
Direct Materials Variances
Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the companys 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 $l7l000.
According to the
Required:
1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 35,000 helmets?
2. What is the standard materials cost allowed (SQ * SP) to make 35.000 helmets?
3. What is the materials spending variance?
4. ‘What is the materials price variance and the materials quantity variance?
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