Bandar Industries manufactures sporting equipment. One of the company's products is a football helmet that requires special plasti During the quarter ending June 30, the company manufactured 3,300 helmets, using 2,178 kilograms of plastic. The plastic cost the Company $16,553. According to the standard cost card, each helmet should require 0.57 kilograms of plastic, at a cost of $8.00 per kilogram. Required: . What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,300 helmets? 2. What is the standard materials cost allowed (SQ x SP) to make 3,300 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" f no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.) 1. Standard quantity of kilograms allowed

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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**Bandar Industries Manufacturing Cost Analysis**

Bandar Industries manufactures sporting equipment. One of the company's products is a football helmet that requires special plastic. During the quarter ending June 30, the company manufactured 3,300 helmets, using 2,178 kilograms of plastic. The plastic cost the company $16,553.

According to the standard cost card, each helmet should require 0.57 kilograms of plastic, at a cost of $8.00 per kilogram.

**Required:**
1. **Standard Quantity of Kilograms of Plastic (SQ):** 
   - Determine the allowed kilograms of plastic to make 3,300 helmets.
2. **Standard Materials Cost Allowed (SQ × SP):** 
   - Calculate this cost for 3,300 helmets.
3. **Materials Spending Variance:** 
   - Compute the variance in spending on materials.
4. **Materials Price Variance and Materials Quantity Variance:** 
   - Analyze both variances.

**Instructions for Analysis:**
- For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). 
- Input all amounts as positive values.
- Do not round intermediate calculations.

**Required Calculations and Analysis Table:**
1. **Standard Quantity of Kilograms Allowed**
2. **Standard Cost Allowed for Actual Output**
3. **Materials Spending Variance**
4. **Materials Price Variance**
5. **Materials Quantity Variance**

This guide assists in analyzing the material variances encountered during the manufacturing process.
Transcribed Image Text:**Bandar Industries Manufacturing Cost Analysis** Bandar Industries manufactures sporting equipment. One of the company's products is a football helmet that requires special plastic. During the quarter ending June 30, the company manufactured 3,300 helmets, using 2,178 kilograms of plastic. The plastic cost the company $16,553. According to the standard cost card, each helmet should require 0.57 kilograms of plastic, at a cost of $8.00 per kilogram. **Required:** 1. **Standard Quantity of Kilograms of Plastic (SQ):** - Determine the allowed kilograms of plastic to make 3,300 helmets. 2. **Standard Materials Cost Allowed (SQ × SP):** - Calculate this cost for 3,300 helmets. 3. **Materials Spending Variance:** - Compute the variance in spending on materials. 4. **Materials Price Variance and Materials Quantity Variance:** - Analyze both variances. **Instructions for Analysis:** - For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). - Input all amounts as positive values. - Do not round intermediate calculations. **Required Calculations and Analysis Table:** 1. **Standard Quantity of Kilograms Allowed** 2. **Standard Cost Allowed for Actual Output** 3. **Materials Spending Variance** 4. **Materials Price Variance** 5. **Materials Quantity Variance** This guide assists in analyzing the material variances encountered during the manufacturing process.
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