Answered step by step
Verified Expert Solution
Link Copied!
Question
1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 Mater Standard Labor Time Product Sintering Yinishing Alpha 1.5 kilos 2.5 liters 0.90 hours 3.5 kilos 3.5 liters 0.35 hours 0.80 hours Information relating to materiais purchased and materials used in production during May follows: X462 7661 Zeta? 0.20 hours Cost Purchase Material Purchases Standard Price X442 14,700 kilos $ 64,680 $.6.20 per kilo 7661 15,700 liters $23,550 91.60 per liter The following additional information is available: Used in Production 9,200 kilos 13,700 liters a. The company recognizes price variances when materials are purchased b. The standard labor rate is $22.00 per hour in Sintering and $20.50 per hour in Finishing c. During May 1,200 direct labor hours were worked in Sintering at a total labor cost of $27,840, and 2,920 direct labor hours were worked in Finishing at a total labor cost of $65,100. d. Production during May was 2.200 Alpha6s and 1700 Zeta7s. Required: 1. Complete the standard cost card for each product, showing the standard cost of direct materials and direct labor. 2. Compute the materials price and quantity variances for each material. 3. Compute the labor rate and efficiency variances for each operation Required 1 Required 2 Required 3 per liter per hour 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.) Standard Standard Standard Quantity or Hours Price or Rate Cost Alpha Direct materials -X442 kilos per kilo Direct materials--Y661 liters Direct labor-Sintering hours Direct labor-Finishing hours por hour Total $ 0.00 Zeta Direct materials X442 kilos Direct materials Y661 liters per liter Direct labor-Sintering hours per hour Direct labor-Finishing hours per hour Total $ 0.00 per kilo Required 1 Required 2 Required 3 Compute the materials price and quantity variances for each material. (Indicate the effect of each variance by selecting "F" for favorable, *u* for unfavorable, and "None" for no effect (t.e., zero variance). Input all amounts as positive values.) Direct Materials Variances-Material X442: Materials price variance Materials quantity variance Direct Materials Variances-Material Y661: Materials price variance Materials quantity variance Required 1 Required 2 Required 3 Compute the labor rate and efficiency variances for each operation. (Indicate the effect of eact variance by selecting "P" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Direct Labor Variances-Sintering Labor rate variance Labor efficiency variance Direct Labor Variances--Finishing Labor rate variance Labor efficiency 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

Accounting Custom Edition For National American University

Authors: Charles T. Horngren, Walter T. Harrison Jr, M. Suzanne Oliver

9th Edition

1256297585, 978-1256297581

More Books

Students explore these related Accounting questions