Answer:
1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,400 helmets?
3,400 helmets x 064 kgs per helmet = 2,176 kgs
2. What is the standard materials cost allowed (SQ × SP) to make 3,400 helmets?
2,176 kgs x $7 per kg = $15,232
3. What is the materials spending variance?
$15,484 - $15,232 = $252 unfavorable (because total expenditures on materials were higher than budgeted)
4. What is the materials price variance and the materials quantity variance?
materials price variance = [($15,484/2,346) - $7] x 2,346 = -$938 favorable (the purchase price per kg was lower than budgeted)
materials quantity variance = (2,346 - 2,176) x $7 = $1,190 unfavorable
