50.1K

Verified Solution

Link Copied!

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash facility near Montreal. The following table provides data concerning the company's costs: For example, electricity costs are $1,500 per month plus $0.06 per car washed. The company expects to wash 8,400 cars in August and to collect an average of $6.20 per car washed. Required: Prepare the company's planning budget for August. Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30 , the company manufactured 3,800 helmets, using 2,660 kilograms of plastic. The plastic cost the company $20,216. According to the standard cost card, each helmet should require 0.63 kilograms of plastic, at a cost of $8.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,800 helmets? 2. What is the standard materials cost allowed (SQSP ) to make 3,800 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance? (For requirements 3 and 4 , 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. Do not round intermediate calculations.)

Answer & Explanation Solved by verified expert

See Answer