Question

Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the companyâs products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,600 helmets, using 2,304 kilograms of plastic. The plastic cost the company $17,510.
According to the standard cost card, each helmet should require 0.55 kilograms of plastic, at a cost of $7.00 per kilogram.Required:1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,600 helmets?2. What is the standard materials cost allowed (SQ Ã SP) to make 3,600 helmets?

Answer 1

Answer:

Instructions are below.

Explanation:

Giving the following information:

According to the standard cost card, each helmet should require 0.55 kilograms of plastic, for $7.00 per kilogram.

First, we need to calculate the standard quantity of plastic to make 3,600 units.

Standard quantity= standard direct material required per unit* numbers of units

Standard quantity= 0.55*3,600= 1,980 kg

Now, we can determine the standard cost:

Standard cost= 1,980kg* $7= $13,860