Question

the company manufactured 3,400 helmets, using 2,278 kilograms of plastic. The plastic cost the company $17,313. According to the standard cost card, each helmet should require 0.62 kilograms of plastic, at a cost of $8.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,400 helmets? 2. What is the standard materials cost allowed (SQ × SP) to make 3,400 helmets?

Answer 1

1) 2,108 kilogram

2) $16,864

Explanation:

Data provided in the question:

Number of helmets manufactured = 3,400

Plastic used for 3,400 helmets = 2,278 kilograms

Plastic required by each helmet = 0.62 kilograms

Cost per kilogram of plastic = $8.00

Now,

1) standard quantity of kilograms of plastic

= Number of helmets × Plastic required by each helmet

= 3,400 × 0.62

= 2,108 kilogram

2) Standard cost allowed for actual output

= Standard quantity of kilograms of plastic × Cost per kilogram of plastic

= 2,108 × $8.00

= $16,864