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Can you please answer part 1, 2 and 3 for the problem 10-23 Mickley Corporation produces two products, Alpha6 and Zeta7, which pass through two
Can you please answer part 1, 2 and 3 for the problem 10-23
Mickley Corporation produces two products, Alpha6 and Zeta7, 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: 1. The company recognizes price variances when materials are purchased. 2. The standard labour rate is $19.80 per hour in Sintering and $19.20 per hour in Finishing. 3. During May, 1,200 direct labour-hours were worked in Sintering at a total labour cost of $27,000, and 2,850 direct labour-hours were worked in Finishing at a total labour cost of $59.850. 4. Production during May was 1,500 Alpha6 and 2,000 Zeta7. Required: 1. Prepare a standard cost card for each product, showing the standard cost of direct materials and direct labour. 2. Compute the materials price and quantity variances for each material. 3. Compute the labour rate and efficiency variances for each operationStep by Step Solution
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