Answer:
Given Data
No. of helmets = 3900
Standard Kg of plastic per helmet = 0.69 Kg
<u>Part 1. Standard Quantity of Kilograms of Plastic
</u>
Standard Quantity = 3900 X 0.69 Kg
Standard Quantity = 2691 Kg
Standard Cost per Kg = $8.00 per Kg
<u>Part 2. Standard Materials Cost Allowed
</u>
Standard Cost = 2691 Kg X $8.00 per Kg = $21528
Actual Quantity = 3042 Kg
Actual Cost = $23119
Actual Cost per Kg = 23119 / 3042
Actual Cost per Kg = $7.60 per Kg
<u>Part 3. Materials Spending Variance
</u>
Material Spending Variance = (Standard Quantity - Actual Quantity) X Standard Price
Material Spending Variance = (2691 - 3042) X 8
Material Spending Variance = 2808 U
<u>Part 4. Materials Price Variance and the Materials Quantity Variance
</u>
Material Price Variance = (Standard Price – Actual Price) X Actual Quantity
Material Price Variance = 1216.80 F
Material Quantity Variance = (Standard Quantity - Actual Quantity) X Standard Price
Material Quantity Variance = (2691 - 3042) X 8
Material Quantity Variance = 2808 U