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5 Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materialsX442

5

Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materialsX442 and Y661. The company uses a standard cost system, with the following standards for each product (on a per unit basis):

Product Raw Material Standard Labor Time
X442 Y661 Sintering Finishing
Alpha6 3.0 kilos 2.0 liters 0.30 hours 1.20 hours
Zeta7 5.0 kilos 4.0 liters 0.40 hours 1.20 hours

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

Material Purchases Purchase Cost Standard Price Used in Production
X442 14,900 kilos $ 37,250 $ 2.30 per kilo 9,400 kilos
Y661 15,900 liters $ 19,080 $ 1.30 per liter 13,900 liters

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 $19.50 per hour in Finishing.

During May, 1,250 direct labor-hours were worked in Sintering at a total labor cost of $29,000, and 2,940 direct labor-hours were worked in Finishing at a total labor cost of $63,210.

Production during May was 1,500 Alpha6s and 1,000 Zeta7s.

Required:

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

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

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

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\begin{tabular}{|c|l|l|l|l|l} & \multicolumn{1}{|c|}{StandardQuantityorHours} & \multicolumn{2}{c|}{StandardPriceorRate} & StandardCost \\ \hline Alpha6: & & & & & \\ \hline Direct materials-X442 & & kilos & per kilo & \\ \hline Direct materials-Y661 & & liters & per liter & \\ \hline Direct labor-Sintering & hours & per hour & \\ \hline Direct labor-Finishing & & hours & & per hour & \\ \hline Total & & & & & \\ \hline Zeta7: & & & & per kilo & \\ \hline Direct materials-X442 & & kilos & per liter & \\ \hline Direct materials-Y661 & & liters & per hour & \\ \hline Direct labor-Sintering & & hours & hours & per hour & \\ \hline Direct labor-Finishing & & & & & \\ \hline Total & & & & & \\ \hline \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline Direct Materials Variances-Material X442: & & \\ \hline Materials price variance & & \\ \hline Materials quantity variance & & \\ \hline Direct Materials Variances-Material Y661: & & \\ \hline Materials price variance & & \\ \hline Materials quantity variance & & \\ \hline \end{tabular} \begin{tabular}{|l|l|l|} \hline Direct Labor Variances-Sintering: & & \\ \hline Labor rate variance & & \\ \hline Labor efficiency variance & & \\ \hline Direct Labor Variances-Finishing: & & \\ \hline Labor rate variance & & \\ \hline Labor efficiency variance & & \\ \hline \end{tabular}

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