Bandar IndustriesBerhad of Malaysia manufactures sporting equipment. One of thecompany’s products, a football helmet for the North Americanmarket, requires a special plastic. During the quarter ending June30, the company manufactured 3,600 helmets, using 2,268 kilogramsof plastic. The plastic cost the company $14,969.
According to thestandard cost card, each helmet should require 0.57 kilograms ofplastic, at a cost of $7.00 per kilogram.
Required:
1. What is thestandard quantity of kilograms of plastic (SQ) that is allowed tomake 3,600 helmets?
2. What is thestandard materials cost allowed (SQ × SP) to make 3,600helmets?
3. What is thematerials spending variance?
SkyChefs, Inc.,prepares in-flight meals for a number of major airlines. One of thecompany’s products is grilled salmon in dill sauce with baby newpotatoes and spring vegetables. During the most recent week, thecompany prepared 5,100 of these meals using 2,000 directlabor-hours. The company paid its direct labor workers a total of$28,000 for this work, or $14.00 per hour.
According to thestandard cost card for this meal, it should require 0.40 directlabor-hours at a cost of $13.50 per hour.
Required:
1. What is thestandard labor-hours allowed (SH) to prepare 5,100 meals?
2. What is thestandard labor cost allowed (SH × SR) to prepare 5,100 meals?
3. What is the laborspending variance?
4. What is the laborrate variance and the labor efficiency variance?
Huron Company producesa commercial cleaning compound known as Zoom. The direct materialsand direct labor standards for one unit of Zoom are givenbelow:
| Standard Quantity or Hours | Standard Price
or Rate | Standard
Cost |
| Directmaterials | 7.10 | pounds | $ | 1.80 | per pound | $ | 12.78 |
| Directlabor | 0.20 | hours | $ | 12.00 | per hour | $ | 2.40 |
|
During the most recentmonth, the following activity was recorded:
Nineteen thousand twohundred and fifity pounds of material were purchased at a cost of$1.70 per pound.
All of the materialpurchased was used to produce 2,500 units of Zoom.
400 hours of directlabor time were recorded at a total labor cost of $5,200.
Required:
1. Compute thematerials price and quantity variances for the month.
2. Compute the laborrate and efficiency variances for the month.
(For allrequirements, 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. Round yourintermediate calculations to the nearest whole dollar
