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?
Accepted Solution
A:
Answer:1) 2,108 kilogram2) $16,864Step-by-step explanation:Data provided in the question:Number of helmets manufactured = 3,400Plastic used for 3,400 helmets = 2,278 kilogramsPlastic required by each helmet = 0.62 kilogramsCost per kilogram of plastic = $8.00Now,1) standard quantity of kilograms of plastic = Number of helmets × Plastic required by each helmet = 3,400 × 0.62= 2,108 kilogram2) Standard cost allowed for actual output= Standard quantity of kilograms of plastic × Cost per kilogram of plastic= 2,108 × $8.00 = $16,864