Answer:
Bandar Industries Berhad of Malaysia
1. The standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets is:
= 2,015
2. The stand materials cost allowed (SQ * SP) is:
= $14,105
3. The materials spending variance is:
= $626 U
4. The materials price variance is:
= $893 F
The materials quantity variance is:
= $1,519 U
Explanation:
a) Data and Calculations:
Number of helmets manufacturing = 3,100
Units of direct materials used = 2,232 kilograms
Actual unit of direct materials used = 0.72 kilograms (2,232/3,100)
Cost of direct materials = $14,731
Unit cost of direct materials = $6.60 ($14,731/2,232)
Standard costs per kilogram = $7.00
Standard units of direct materials = 0.65 kilograms
1. The standard quantity of kilograms of plastic (SQ) that is allowed to make 3,100 helmets = 2,015 (3,100 * 0.65)
2. The stand materials cost allowed (SQ * SP) = $14,105 (2,015 * $7.00)
3. The materials spending variance = $626 U ($14,731 - $14,105)
4. The materials price variance = standard price - actual price * actual quantity used
= $7.00 - $6.60 * 2,232
= $893 F
The materials quantity variance = standard quantity - actual quantity * standard price
= 2,015 - 2,232 * $7
= $1,519 U
