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Problem - Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet forthe North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3.200 helmets, using 2.176 kilograms of plastic. The plastic cost the company $16,538.
According to the standard cost card, each helmet should require 0.62 kilograms of plastic, at a cost of $8.00 per kilogram.
1. What is the standard quantity of kilograms of plastic (50) that is allowed to make 3.200 helmets?
2. What is the standard materials cost allowed (50 X SP) to make 3,200 helmets?
3. What is the materials spending variance?
4. What is the materials price variance and the materials quantity variance?
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