Answer:
(1) 2,108
(2) $16,864
(3) $449 U
(4) (a) $911 F
(b) $1,360 U
Explanation:
(1) Standard quantity of kilograms of plastic allowed:
= Helmets manufactured × kilograms of plastic require for each helmet
= 3,400 × 0.62
= 2,108
(2) Standard materials cost allowed:
= Standard quantity of kilograms of plastic allowed × cost per kilogram
= 2,108 × $8
= $16,864
(3) Materials spending variance:
= Cost of plastic - Standard materials cost allowed
= $17,313 - $16,864
= $449 Unfavorable
(4) Materials price variance:
= Cost of plastic - (Kilogram of plastic used × cost per kilogram)
= $17,313 - (2,278 × $8)
= $911 favorable
Materials quantity variance:
= cost per kilogram × (Kilogram of plastic used - Standard quantity of kilograms of plastic allowed)
= $8 × (2,278 - 2,108)
= $1,360 Unfavorable
