Answer:
1. 21,000 kg of plastic
2. $168,000
3. $3000 Unfavorable
4. Materials Price variance $9000 Favaorable
Materials Quantity variance $12,000 Unvaforable
Explanation:
1. Calculation to determine the standard quantity of kilograms of plastic (SQ) that is allowed to make 35,000 helmets
Using this formula
Standard quantity of kilograms of plastic (SQ) = Standard quantity required per helmet x Total no. of helmets
Let plug in the formula
Standard quantity of kilograms of plastic (SQ) = 0.60 kg x 35,000
Standard quantity of kilograms of plastic (SQ) = 21,000 kg of plastic
Therefore The standard quantity of kilograms of plastic (SQ) that is allowed to make 35,000 helmets is 21,000 kg of plastic
2. Calculation to determine the standard materials cost allowed (SQ X SP) to make 35,000 helmets
Using this formula
Standard materials cost allowed (SQ X SP) = Standard quantity required per helmet x Standard cost per kg x Total no. of helmets
Let plug in the formula
Standard materials cost allowed (SQ X SP)= 0.60 x $8 x 35,000
Standard materials cost allowed (SQ X SP)= $168,000
Therefore The standard materials cost allowed (SQ X SP) to make 35,000 helmets is $168,000
3. Calculation to determine the materials spending variance
First step is to calculate the Materials Price variance
Using this formula
Materials Price variance = (AQ × AP) - (AQ × SP)
Let plug in the
Materials Price variance= $171,000 - (22,500 x $8)
Materials Price variance= $171,000 - 180,000
Materials Price variance= -$9,000
= $9000 Favaorable
Second step is to calculate the Materials Quantity variance using this formula
Materials Quantity variance = (AQ × SP) - (SQxSP)
Let plug in the formula
Materials Quantity variance=
Materials Quantity variance= 180,000 - $168,000
Materials Quantity variance=$12,000
Materials Quantity variance= $12,000 Unvaforable
Now let calculate the Materials spending variance using this formula
Materials spending variance = Price variance + Quantity variance
Let plug in the formula
Materials spending variance= -$9,000+ $12,000 Materials spending variance= $3,000
Materials spending variance= $3000 Unfavorable
Therefore Materials spending variance is $3000 Unfavorable
4. Calculation to determine the materials price variance and the materials quantity variance
Calculation for the Materials Price variance Using this formula
Materials Price variance = (AQ × AP) - (AQ × SP)
Let plug in the formula
Materials Price variance= $171,000 - (22,500 x $8)
Materials Price variance= $171,000 - 180,000
Materials Price variance= -$9,000
Materials Price variance= $9000 Favaorable
Therefore Materials Price variance is $9000 Favaorable
Calculation to determine Materials Quantity variance using this formula
Materials Quantity variance = (AQ × SP) - (SQxSP)
Let plug in the formula
Materials Quantity variance= = 180,000 - $168,000
Materials Quantity variance=$12,000
Materials Quantity variance= $12,000 Unvaforable
Therefore Materials Quantity variance is $12,000 Unvaforable
