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I only need help with Requirement 2. Please help with the correct answers and the formatting for Requirement 2. Thank you! Mickley Corporation produces two
I only need help with Requirement 2.
Please help with the correct answers and the formatting for Requirement 2. Thank you!
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 | ||||
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 | |
Information relating to materials purchased and materials used in production during May follows: |
a) The company recognizes price variances when materials are purchased.
b) The standard labor rate is $23.00 per hour in Sintering and $20.00 per hour in Finishing.
c) During May, 1,300 direct labor-hours were worked in Sintering at a total labor cost of $30,550 and 2,950 direct hours worked in Finishing at a total labor cost of $64,900.
d) Production during May was 1,600 Alpha6s and 1,300 Zeta7s.
Material | Purchases | Purchase Cost | Standard Price | Used in Production | ||
X442 | 15,000 kilos | $39,000 | $2.40 | per kilo | 9,500 | kilos |
Y661 | 16,000 liters | $20,800 | $1.40 | per liter | 14,000 | liters |
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).) |
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