Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing Each of the products uses two raw materialsX442 and Y661 The company uses a standard cost system, with the following standards for each product (on a per unit basis) Product Raw Material Standard Labor Time 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 The company recognizes price variances when materials are purchased The standard labor rate is $23 00 per hour in Sintering and $20 00 per hour in Finishing 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 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 Compute the labor rate and efficiency variances for each operation (Indicate the effect of e favorable, U for unfavorable, and None for no effect (i e , zero variance) Input all amou Direct Labor VariancesSintering Labor rate variance Labor efficiency variance Direct Labor VariancesFinishing Labor rate variance Labor efficiency variance Standard Quantity or Hours Standard Price or Rate Standard Cost kilos liters hours hours per kilo per liter per hour per hour $ 0 00 Alphab Direct materials X442 Direct materials Y661 Direct labor Sintering Direct labor Finishing Total Zeta Direct materials X442 Direct materials Y661 Direct labor Sintering Direct labor Finishing Total kilos liters hours hours per kilo per liter per hour per hour $ 0 00 Reg 1 Reg 2

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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 materialsX442 and

Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materialsX442 and Y661. The company uses a standard cost system, with the following standards for each product (on a per unit basis):

Product	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:

The company recognizes price variances when materials are purchased.
The standard labor rate is $23.00 per hour in Sintering and $20.00 per hour in Finishing.
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.

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.

image text in transcribed

Compute the labor rate and efficiency variances for each operation. (Indicate the effect of e favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amou Direct Labor VariancesSintering: Labor rate variance Labor efficiency variance Direct Labor VariancesFinishing: Labor rate variance Labor efficiency variance Standard Quantity or Hours Standard Price or Rate Standard Cost kilos liters hours hours per kilo per liter per hour per hour $ 0.00 Alphab: Direct materials-X442 Direct materials-Y661 Direct labor-Sintering Direct labor-Finishing Total Zeta: Direct materials-X442 Direct materials-Y661 Direct labor-Sintering Direct labor-Finishing Total kilos liters hours hours per kilo per liter per hour per hour $ 0.00 Reg 1 Reg 2 >