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...


1. Complete the standard cost card for each product, showing the standard cost of direct materials and direct labor.


2. Compute the materials price and quantity variances for each material.


3. Compute the labor rate and efficiency variances for each operation.


Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each<br>of the products uses two raw materials-X442 and Y661. The company uses a standard cost system, with the following standards<br>for each product (on a per unit basis):<br>Raw Material<br>Standard Labor Time<br>Product<br>Alpha6<br>Zeta7<br>Sintering<br>0.40 hours<br>0.10 hours<br>Finishing<br>0.80 hours<br>0.60 hours<br>X442<br>Y661<br>2.0 liters<br>4.0 liters<br>1.2 kilos<br>3.0 kilos<br>Information relating to materials purchased and materials used in production during May follows:<br>Purchases<br>14,500 kilos<br>15,500 liters<br>Standard Price<br>$ 4.00 per kilo<br>$ 1.90 per liter<br>Used in Production<br>9,000 kilos<br>13,500 liters<br>Material<br>Purchase Cost<br>$ 60,900<br>$ 27,900<br>X442<br>Y661<br>The following additional information is available:<br>a. The company recognizes price variances when materials are purchased.<br>b. The standard labor rate is $21.00 per hour in Sintering and $19.50 per hour in Finishing.<br>c. During May, 1,250 direct labor-hours were worked in Sintering at a total labor cost of $28,750, and 2,900 direct labor-hours were<br>worked in Finishing at a total labor cost of $62,350.<br>d. Production during May was 2,000 Alpha6s and 2,250 Zeta7s.<br>

Extracted text: 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 Material Standard Labor Time Product Alpha6 Zeta7 Sintering 0.40 hours 0.10 hours Finishing 0.80 hours 0.60 hours X442 Y661 2.0 liters 4.0 liters 1.2 kilos 3.0 kilos Information relating to materials purchased and materials used in production during May follows: Purchases 14,500 kilos 15,500 liters Standard Price $ 4.00 per kilo $ 1.90 per liter Used in Production 9,000 kilos 13,500 liters Material Purchase Cost $ 60,900 $ 27,900 X442 Y661 The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $21.00 per hour in Sintering and $19.50 per hour in Finishing. c. During May, 1,250 direct labor-hours were worked in Sintering at a total labor cost of $28,750, and 2,900 direct labor-hours were worked in Finishing at a total labor cost of $62,350. d. Production during May was 2,000 Alpha6s and 2,250 Zeta7s.

Jun 08, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here