Exercise 10-1 (Algo) Direct Materials Variances [LO10-1]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 3,000 helmets, using 2,040 kilograms of plastic. The plastic cost thecompany $15,504.According to the standard cost card, each helmet should require 0.59 kilogram 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 3,000 helmets?2. What is the standard materials cost allowed (SQ × SP) to make 3,000 helmets?3. What is the materials spending variance?4. What are the materials price variance and the materials quantity variance?Note: 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.1. Standard quantity of kilograms allowed2. Standard cost allowed for actual output3. Materials spending variance4. Materials price variance4. Materials quantity variance$$1,77014,1601,398 UFU

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Description: Exercise 10-1 (Algo) Direct Materials Variances [LO10-1]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

Direct material variance is the difference between standard direct material cost for actual…

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Exercise 10-1 (Algo) Direct Materials Variances [LO10-1] 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 3,000 helmets, using 2,040 kilograms of plastic. The plastic cost the company $15,504. According to the standard cost card, each helmet should require 0.59 kilogram 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 3,000 helmets? 2. What is the standard materials cost allowed (SQ x SP) to make 3,000 helmets? 3. What is the materials spending variance? 4. What are the materials price variance and the materials quantity variance? Note: 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. 1. quantity of kilograms allowed 2. Standard cost allowed for actual output 3. Materials spending variance 4. Materials price variance 4. Materials quantity variance $ $ 1,770 14,160 1,398 U F

Exercise 10-1 (Algo) Direct Materials Variances [LO10-1] 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 3,000 helmets, using 2,040 kilograms of plastic. The plastic cost the company $15,504. According to the standard cost card, each helmet should require 0.59 kilogram 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 3,000 helmets? 2. What is the standard materials cost allowed (SQ x SP) to make 3,000 helmets? 3. What is the materials spending variance? 4. What are the materials price variance and the materials quantity variance? Note: 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. 1. quantity of kilograms allowed 2. Standard cost allowed for actual output 3. Materials spending variance 4. Materials price variance 4. Materials quantity variance $ $ 1,770 14,160 1,398 U F

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 5PA: Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but...

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