## Answers

**Solution 1:**

Bandar Industries | |

Number of helmets | 3600 |

Standard kilograms of plastic per helmet | 0.66 |

Total standard kilograms allowed | 2376 |

Standard cost per kilogram | $8 |

Total standard cost | $19,008 |

Actual costs incurred | $20,520 |

Total standard cost | $19,008 |

Total Material variance-Unfavorable | $1,512 |

**Solution 2:**

Actual material Price = $20520 / 2700 = $7.60

Material price variance = (SP - AP) * AQ = ($8 - $7.60) * 2700 = $1,080 Favorable

Material Quantity variance = (SQ - AQ) *SP = (2376 - 2700) * $8 = $2,592 Unfavorable

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