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): Alpha 6 Zeta Raw Material X442 Y661 2.5 litres 4.5 kgs 5.5 litres 2.5 kgs Standard Labour Time Sintering Finishing 0.40 hrs 1.20 hrs 0.40 hrs 0.80 hrs Information relating to materials purchased and materials used in production during May follows: Purchases 15.400 kgs 16,400 litres X442 Y661 Purchase Cost $46,200 $27,880 Standard Price $2.80 per kg $1.80 per litre Used in Production 9.900 kg 14,400 litres The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labour rate is $21.00 per hour in Sintering and $20.00 per hour in Finishing c. During May, 1.350 direct labour-hours were worked in Sintering at a total labour cost of $33.210, and 2.990 direct labour-hours were worked in Finishing at a total labour cost of $65.780. d. Production during May was 2,000 Alphabs and 1.200 Zeta'ls. Required: VE Mickley Corporation produces two products, Alpha 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): Raw Material Standard Labour Time X442 Y661 Sintering Finishing Alpha 6 2.5 kgs 2.5 litres 0.40 hrs 1.20 hrs Zeta 7 4.5 kgs 5.5 litres 0.40 hrs 0.80 hrs Information relating to materials purchased and materials used in production during May follows: Standard Used in Purchases Purchase Cost Price Production X442 15,400 kgs $46,200 $2.80 per kg 9,900 kg Y661 16,400 litres $27,880 $1,80 per litre 14.400 litres The following additional information is available: a. The company recognizes price variances when materials are purchased b. The standard labour rate is $2100 per hour in Sintering and $20.00 per hour in Finishing c. During May, 1,350 direct labour-hours were worked in Sintering at a total labour cost of $33,210, and 2,990 direct labour-hours were worked in Finishing at a total labour cost of $65,780. d. Production during May was 2,000 Alpha6s and 1.200 Zetas. Required: Preu 7 of an Nav Required: 1. Complete the standard cost card for each product, showing the standard cost of direct materials and direct labour. (Round your answers to 2 decimal places.) Standard Quantity or Hours Standard Price or Rate Standard Cost kgs litres per kg per litre per hour per hour hours hours Alphab: Direct materials-X442 Direct materials-Y661 Direct labour-Sintering Direct labour-Finishing Total Zeta: Direct materials-X442 Direct materials.Y661 Direct labour-Sintering Direct labour-Finishing Total $ 0.00 kgs litres per kg per litre per hour per hour hours hours $ 0.00 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 "P" for favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance) Direct Materials Variances-Material X442 Materials price variance Materiais quantity variance Direct Materials Variances-Material Y661: Materials price variance Materials quantity variance 3. Compute the labour rate and efficiency variances for each operation (Input all amounts as positive values. Indicate the effect of each variance by selecting "P" for favorable, "U" for unfavorable, and "Nane" for no effect (ie, zero variance).) Direct Labour Variances-Sintering: Labour rate variance Labour efficiency variance Direct Labour Variances Finishing: Labour rate variance Labour efficiency variance
