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:

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

The following additional information is available:

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 labor-hours were worked in Finishing at a total labor cost of $64,900.

Production during May was 1,600 Alpha6s and 1,300 Zeta7s.

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).)

Direct Materials VariancesMaterial X442:
Materials price variance	$3,000	U
Materials quantity variance	$16,200	F
Direct Materials VariancesMaterial Y661:
Materials price variance	$1,600	F
Materials quantity variance	$12,000	U