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 22,500 kilograms of plastic. the plastic cost the company $171,000. according to the standard cost card, each helmet should require 0.6 kilograms of plastic, at a cost of $8 per kilogram. required: 1. according to the standards, what cost for plastic should have been incurred to make 35,000 helmets? how much greater or less is this than the cost that was incurred?

cost of plastic = $168,000

excess cost = $3000

Explanation: This can be done as follows :-

cost of plastic  = (standard quantity per * (standard price     * ( no. of helmet)

should been          helmet)                             per kg of plastic)

incurred              

                        = (0.6) * (8) * (35,000)

                       = $168,000

so the extra cost incurred is $3000 that is $171,000 - $168,000  .                                  

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