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 Asia Sporting Industries, located in Hong Kong, manufactures sporting equipment. A major seller for the company, a football helmet for the Texas market, requires a very hard special plastic. During the quarter ending March 31, the company manufactured 3,300 helmets, using 2,277 kilograms of plastic. The plastic cost the company $19,582.
Based on the company's standard cost card for the helmet, each helmet should require 0.6 kilograms of plastic, at a cost of $9 per kilogram.
Required:
1. According to the standards, what would be the total standard cost of plastic that should have been incurred to make 3,300 helmets? How much greater or less is this than the cost that was incurred? (Round "standard kilograms of plastic per helmet" to 1 decimal place.)
Number of helmets
Standard kilograms of plastic per helmet
Total standard kilograms allowed
Standard cost per kilogram
Total standard cost
Actual cost incurred
Total standard cost
Total material variance
2. Break down the difference computed in (1) above into a materials price variance and a materials quantity variance. (Round your actual materials price to two decimal places, and round your final answers to the nearest whole dollar. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Materials price variance
Materials quantity variance