Question

Direct Materials Variances LO9-4] Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,700 helmets using 2,516 kilograms of plastic. The plastic cost the company $19,122 According to the standard cost card, each helmet should require 0.60 kilograms of plastic, at a cost of $8.00 per kilogram. Required: What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,700 helmets?

Answer 1

The standard quantity (SQ) of plastic allowed for the production of 3,700 helmets is 2,220 kilograms, calculated by multiplying the standard quantity per unit of 0.60 kilograms by the number of helmets produced.

Step-by-step explanation:

The standard quantity of kilograms of plastic (SQ) that is allowed to make 3,700 helmets can be calculated using the formula:

SQ = Number of helmets x Standard quantity per helmet

According to the information given, each helmet should require 0.60 kilograms of plastic. So:

SQ = 3,700 helmets x 0.60 kilograms per helmet = 2,220 kilograms

To calculate the standard quantity (SQ) of kilograms of plastic that is allowed to make 3,700 helmets, we need to use the standard quantity per unit and multiply it by the number of units produced. The standard quantity per helmet is given as 0.60 kilograms. Therefore, the SQ can be calculated as follows:

SQ = Standard quantity per unit × Number of units produced

SQ = 0.60 kilograms/helmet × 3,700 helmets

SQ = 2,220 kilograms

Thus, the standard quantity of kilograms of plastic that should have been used to manufacture the 3,700 helmets is 2,220 kilograms according to the Direct Materials Variances practice.