Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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).)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

=+(18.17) [ G(n)fn=F(x)G(x)-["F(t)8(t)dt ROEnEX

Answered: 1 week ago