Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass throug

Question

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

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

  

The following additional information is available:

The company recognizes price variances when materials are purchased.

The standard labor rate is $23.00 per hour in Sintering and $20.00 per hour in Finishing.

During May, 1,300 direct labor-hours were worked in Sintering at a total labor cost of $30,550, and 2,950 direct labor-hours were worked in Finishing at a total labor cost of $64,900.

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

Requied:

1. 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.)

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

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

Raw Material

Standard Labor Time

Product X442 Y661 Sintering Finishing Alpha6 2.5 kilos 2.5 liters 0.20 hours 0.90 hours Zeta7 4.5 kilos 3.5 liters 0.30 hours 1.20 hours Not secure l ezto.mheducation.com/hm.tpx?-0.5808895440738602-151 1638332001

Explanation / Answer

1. Standard cost card for Alpha6s :

Standard Cost Card for Zeta7s:

2. Materials Price and Quantity Variances :

3. Labor Rate and Efficiency Variances:

Materials Quantity per Unit Cost per Unit Amount X442 2.50 kilos $ 2.40 per Kilo $ 6.00 Y661 2.50 liters 1.40 per liter 3.50 Labor Sintering 0.20 hours $ 23.00 per hour 4.60 Finishing 0.90 hours 20 per hour 18.00 Total Cost per Unit $ 32.10

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