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?

Question

Brandon Walter

Business

13 July, 08:33

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?

+4

Answers (1)

Know the Answer?

Harley Walton · Answer 1

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