Problem: Below is a question in which I found the answers for #1 a&b however I'm confused on how to determine requirement 2 the material price variance and material quantity variance. I seem to be calculating the wrong figures Thanks for your help
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 35,000 helmets, using 20,300 kilograms of plastic. The plastic cost the company RM133,980. (The currency in Malaysia is the ringgit, which is denoted here by RM.)
According to the standard cost card, each helmet should require 0.52 kilograms of plastic, at a cost of RM7 per kilogram.
Requirement 1:
(a) What cost for plastic should have been incurred to make 35,000 helmets? Cost incurred RM 127400
(b) How much greater or less is this than the cost that was incurred?
Standard cost is less greater less by RM 6580 than the actual cost incurred.
Requirement 2:
Break down the difference computed in Requirement 1 above into a materials price variance and a materials quantity variance. Input all amounts as positive values.
Materials price variance RM
Materials quantity variance RM.