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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