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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 3.800 helmets, using 2,812 kilograms of plastic. The plastic cost the company $21,371.
According to the standard cost card, each helmet should require 0.65 kilograms of plastic. at a cost of $8.00 per kilogram.
Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,800 helmets? 2. What is the standard materials cost allowed (SQ x SP) to make 3,800 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance?