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):

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 $22.00 per hour in Sintering and $21.50 per hour in Finishing.

During May, 1,300 direct labor-hours were worked in Sintering at a total labor cost of $30,680, and 2,960 direct labor-hours were worked in Finishing at a total labor cost of $69,560.

Production during May was 1,700 Alpha6s and 1,550 Zeta7s.

Required:

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.

Raw Material Standard Labor Time Product X442 Y661 Sintering Finishing Alpha6 1.8 kilos 2.4 liters 0.20 hours 1.20 hours Zeta7 4.4 kilos 4.4 liters 0.40 hours 0.80 hours

Explanation / Answer

Statement showing the standard cost for each product Alpha 6 Direct material X442 1.8 *2.5 4.5 Direct material y 661 2.4 * 1.5 3.6 Direct labour cost sintering 0.2 X 22 4.4 Finishing 1.2 X 21.5 25.8 Standard Cost 38.3 Zeta 7 Direct material X442 4.4 *2.5 11 Direct material y 661 4.4 * 1.5 6.6 Direct labour cost sintering 0.4 X 22 8.8 Finishing 0.8 X 21.5 17.2 Standard Cost 43.6

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.