Exerclse Algo Direct Materlals Varlances 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.
Requlred:
What is the standard quantity of kilograms of plastic 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 requlrements and Indleate the effect of each varlance by selecting F for favorable, U for unfovorable, and "None" for
no effect le zero varlence Input all amounts as positlve values. Do not round Intermedlete calculatlons.
