Mickley Carporation produces two praducts, Alphaßs and Zeta7s, which pass throug

Question

Mickley Carporation produces two praducts, Alphaßs and Zeta7s, which pass through two aperations Sintering and Finishing. Each af the products uses two raw materials, X442 and Y681. The company usesa tandard cast system, with the folowing standards for each praduct (an a per unit basis) Product -3.0 kilos 5,0liters Sintering1.00 hours 0.40 hours 0.50 hours 1.20 hours 20 liters 0.50 Zela 5.0 kiloe Information rellating to materials purchased and materials used in production during May follows Used in Cost X442 Y861 10,200 klas 15,700 kilos 551,810 S310 per kla 16,700 iters 20,040 $1.30 per liter 14,700 iters The follawing additional infarmation is available The company recognizes price variances when materials are purchased. b. The standard labar rate is $23.00 per hour in Sintering and $21.50 per hour in Firnishing c. During May, 1,450 direct labar hours were worked in Sintering at a total labar cost of $35,090, and 3,020 direct labar hours were worked in Firnishing at a tatal labor cost af $70,970. d. Praduction during May was 2.300 AlphaBs and 700 Zetas. 1. Complete the standard cost card for each product, showing the standard cost of direct materials and direct labar. Round your anawers to 2 declmal placee.j or Hours or Rate oet Alphaß: Direct materials-X442 Direct materials-Y661 Direct labar Sintering Direct labar-Finishing Tota .00klas S 3.10per kila 9 .00ters S1.30per iter 0.40 hoursS23.00per hour hours $ 21.50per hour Zeta7 Direct materials-X442 Direct materials-Y661 Direct labar Sintering Direct labar-Finishing Tota 5.00kilas S 3.10per kila S 15 5.00ters S1.30per iter 0.50 hoursS23.00per hour hours S21.50per hour 25 S 59.30 2. Compute the materials price and quanity variances for each material. nput all amounts as posltlve value. Indicate the etfect of each variance by electing "F for favorable, "U" for unfavorable, and "None" for no effect (Le, zero varlance) Direct Materials Variances-Material X442 Materials price variance Materials quantity variance Direct Materials Variances-Material Y681 Materials price variance Materials quantity variance 3. Compute the labar rate and efficiency variances for each operation. (Input all amounta as poaitive value. Indicate the etfect of each variance by electing "F for favorable, "U" for unfavorable, and "None" for no effect (Le, zero varlance) Direct Labor Labor rate variance Labor efficiency variance Direct Labor Variances Finishing Labor rate variance Labor efficiency variance

Explanation / Answer

2. Materials Price and Quantity Variances :

Actual cost per kilo for X 442 = $ 51,810 / 15,700 kilos = $ 3.30

Materials Price Variance ( X 442) = $ ( 3.10 - 3.30) x 15,700 = $ 3,140 U

Materials Quantity Variane ( X 442) = [( 2,300 x 3.00 + 700 x 5.00) kilos - 10,200 kilos] x $ 3.10 = $ 620 F

3. Labor Rate and Efficiency Variances :

Material X442 $ Materials Price Variance 3,140 U Materials Quantity Variance 620 F Material Y 661 Materials Price Variance 1,670 F Materials Quantity Variance 8,580 U

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