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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
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 2661 Sintering Finishing Alpha 1.5 kilon 2.0 litera 0.20 hours 0.80 hours leta? 3.5 kilos 4.0 litera 0.40 hours 0.90 hours Information relating to materials purchased and materials used in production during May follows: Purchase Materim Purchases Cost Standard Price 2442 14,300 kilon $ 57,200 $ 3.80 per kilo 7661 15,300 liters $ 24,480 $ 1.70 per liter The following additional Information is available: Voed in Production 8,800 kilos 13,300 liters a. The company recognizes price variances when materials are purchased b. The standard labor rate is $20.00 per hour in Sintering and $18.50 per hour in Finishing c. During May, 1,300 direct labor-hours were worked in Sintering at a total labor cost of $29,640, and 2,880 direct labor-hours were worked in Finishing at a total labor cost of $59,040. d. Production during May was 1,800 Alpha6s and 1,800 Zeta7s. 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 (I.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
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