Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materials—X442 and Y661. The company uses a...


Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materials—X442 and Y661. The company uses a standard cost system, with the following standards for each product (on a per unit basis):







































Raw MaterialStandard Labor Time
ProductX442Y661SinteringFinishing
Alpha62.0 kilos1.5 liters0.10 hours0.80 hours
Zeta73.0 kilos2.5 liters0.45 hours0.90 hours


Information relating to materials purchased and materials used in production during May follows:




































MaterialPurchasesPurchase CostStandard
Price
Used in
Production
X44214,800kilos$66,600$4.30per kilo9,300kilos
Y66115,800liters$23,700$1.60per liter13,800liters


The following additional information is available:




  1. The company recognizes price variances when materials are purchased.


  2. The standard labor rate is $22.00 per hour in Sintering and $21.00 per hour in Finishing.




  3. During May, 1,220 direct labor-hours were worked in Sintering at a total labor cost of $28,060, and 2,930 direct labor-hours were worked in Finishing at a total labor cost of $67,390.




  4. Production during May was 2,300 Alpha6s and 1,600 Zeta7s.




requied:







Complete the standard cost card for each product, showing the standard cost of direct materials and direct labor. (Round your answers to 2 decimal places.)












































































































































Standard Quantity or HoursStandard Price or RateStandard Cost
Alpha6:
Direct materials-X442kilosper kilo
Direct materials-Y661litersper liter
Direct labor-Sinteringhoursper hour
Direct labor-Finishinghoursper hour
Total$0.00
Zeta7:
Direct materials-X442kilosper kilo
Direct materials-Y661litersper liter
Direct labor-Sinteringhoursper hour
Direct labor-Finishinghoursper hour
Total$0.00






Compute the materials price and quantity variances for each material. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)








































































Direct Materials Variances—Material X442:
Materials price variance
Materials quantity variance
Direct Materials Variances—Material Y661:
Materials price variance
Materials quantity variance








Compute the labor rate and efficiency variances for each operation. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)








































































Direct Labor Variances—Sintering:
Labor rate variance
Labor efficiency variance
Direct Labor Variances—Finishing:
Labor rate variance
Labor efficiency variance
















Jun 01, 2022
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