Exercise Algo Direct Materials Variances LO
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 the company manufactured helmets,
using kilograms of plastic. The plastic cost the company $
According to the standard cost card, each helmet should require kilograms of plastic, at a cost of $ per kilogram.
Required:
What is the standard quantity of kilograms of plastic SQ that is allowed to make helmets?
What is the standard materials cost allowed to make helmets?
What is the materials spending variance?
What is the materials price variance and the materials quantity variance?
For requirements and indicate the effect of each variance by selecting F for favorable, U for unfavorable, and "None" for
no effect ie zero variance Input all amounts as positive values. Do not round intermediate calculations.
