Bandar Industries Berhad of Malaysia manufactures sporting e

Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the companys football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,700 helmets, using 2,701 kilograms of plastic. The plastic cost the company $17,827 According to the standard cost card, each helmet should require 0.66 kilograms of plastic, at a cost of $7.00 per kilogram. Required: 1. According to the standards, what cost for plastic should have been incurred to make 3,700 helmets? How much greater or less is this than the cost that was incurred? (Round Standard kilograms of plastic per helmet to 2 decimal places.) Number of helmets Standard kilograms of plastic per helmet Standard cost per kilogram favorable

Solution

b.

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Number of Helmet	3,700
Standard Kilograms of Plastic helmet	0.66
Total Standard kilograms allowed	2,442
Standard cost per kilogram	7
Total Standard Cost	17,094
Actual Cost incurred	17,827
Total Standard Cost	17,094
Total matrial variance- Unfavorable	733.00