Direct Materials Variances LO10–1 Bandar Industries Berhad ofMalaysia manufactures sporting equipment. One of the company’sproducts, a football helmet for the North American market, requiresa special plastic. During the quarter ending June 30, the companymanufactured 35,000 helmets, using 22,500 kilograms of plastic. Theplastic cost the company $171,000. According to the standard costcard, each helmet should require 0.6 kilograms of plastic, at acost of $8 per kilogram.

1.	Number ofhelmets................................................
	Number of kilogramsof plastic per helmet.............	×   ___
	Standard Kilogramsallowed...................................
	Standard cost perKilogram...................................	× $____
	Total standardcost................................................	$______
	Actual costincurred...............................................	$______
	Standard costabove..............................................	______
	Spendingvariance.................................................	$    ___
__

2.

Standard Quantity Allowed for Actual Output, at Standard Price (SQ × SP)		Actual Quantity of Input, at Standard Price (AQ × SP)		Actual Quantity of Input, at Actual Price (AQ × AP)
______ kilograms × $____ per Kilogram = $______		______ kilograms × $____ per Kilogram = $______		$_______
	Materials quantity variance = $_____ __		Materials price variance = $_____ __
	Spending variance = $___ __

     Alternatively, the variances can becomputed using the formulas:

         Materialsquantity variance = SP (AQ – SQ)

            =$ _____per Kilogram (_______ Kilogram – _____ Kilogram)

            =$______ __

         Materialsprice variance = AQ (AP – SP)

            =_____ Kilogram ($____ per Kilogram* – $___ per Kilogram)

            =$____ __

            *$171,000/ 22,500 Kilogram = $____ per Kilogram.