Asia Sporting Industries, located in Hong Kong, manufactures sporting equipment. A major seller for the company,…

Asia Sporting Industries, located in Hong Kong, manufactures
sporting equipment. A major seller for the company, a football
helmet for the Texas market, requires a very hard special plastic.
During the quarter ending March 31, the company manufactured 3,300
helmets, using 2,277 kilograms of plastic. The plastic cost the
company $19,582.
Based on the company’s standard cost card for the helmet, each
helmet should require 0.6 kilograms of plastic, at a cost of $9 per
kilogram.
Required:
1. According to the standards, what would be the total standard
cost of plastic that should have been incurred to make 3,300
helmets? How much greater or less is this than the cost that was
incurred? (Round “standard kilograms of plastic per helmet”
to 1 decimal place.)

Number of helmets

Standard kilograms of
plastic per helmet

Total standard kilograms
allowed

Standard cost per
kilogram

Total standard cost

Actual cost incurred

Total standard cost

Total material
variance

2. Break down the difference computed in (1) above into a
materials price variance and a materials quantity variance.
(Round your actual materials price to two decimal places,
and round your final answers to the nearest whole dollar. Indicate
the effect of each variance by selecting “F” for favorable, “U” for
unfavorable, and “None” for no effect (i.e., zero
variance).)

Materials price
variance

Materials quantity
variance