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Mickley Corporation produces two products, Alpha 6 s and Zeta 7 s , which pass through two operations, Sintering and Finishing. Each of the products
Mickley Corporation produces two products, Alphas and Zetas which pass through two operations, Sintering and
Finishing. Each of the products uses two raw materlalsX and Y The company uses a standard cost system, with
the following standards for each product on a per unit basis:
Information relating to materlals purchased and materlals used in production during May follows:
The following additional Information Is avallable:
a The company recognizes price varlances when materlals are purchased.
b The standard labor rate is $ per hour in SIntering and $ per hour In Finishing.
c DurIng May, direct laborhours were worked In Sintering at a total labor cost of $ and direct labor
hours were worked in Finishing at a total labor cost of $
d Production during May was Alphas and Zetas
Requlred:
Complete the standard cost card for each product, showing the standard cost of direct materlals and direct labor.
Compute the materlals price and quantlty varlances for each materlal.
Compute the labor rate and efficlency varlances for each operation.
Complete this question by entering your answers in the tabs below.
Compute the materials price and quantity variances for each material. Indicate the effect of each variance by selecting for
favorable, U for unfavorable, and "None" for no effect ie zero variance Input all amounts as positive values.
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