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 the products uses two raw materials --X442 and

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 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): Product Alphab Zeta? Raw Material 7661 3.0 kilos 3.0 liters 5.0 kilos 5.0 liters Standard Labor Time Sintering Finishing 0.38 hours 1.10 hours 0.48 hours 1.20 hours Information relating to materials purchased and materials used in production during May follows: Material 442 7661 Purchases 15,300 kilos 16,300 liters Purchase Cost $44,370 $26,080 Standard Price $2.70 per kilo $1.70 per liter Used in Production 9,800 kilos 14,300 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 $21.50 per hour in Finishing c. During May, 1,320 direct labor-hours were worked in Sintering at a total labor cost of $32,340, and 2.980 direct labor-hours were worked in Finishing at a total labor cost of $70.030. d. Production during May was 1.900 Alphabs and 900 Zeta7s. Information relating to materials purchased and materials used in production during May follows: Material X442 Y661 Purchases 15,300 kilos 16,300 liters Purchase Cost $44,370 $26,080 Standard Price $2.70 per kilo $1.70 per liter Used in Production 9,500 kilos 14,300 liters The following additional information is available: ces a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $23.00 per hour in Sintering and $21.50 per hour in Finishing c. During May 1,320 direct labor hours were worked in Sintering at a total labor cost of $32.340, and 2.980 direct labor hours were worked in Finishing at a tota labor cost of $70,030 d. Production during May was 1.900 Alphaos and 900 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 Complete this question by entering your answers in the tabs below

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

Step: 3

blur-text-image

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

New Principles Of Best Practice In Clinical Audit

Authors: Robin Burgess

2nd Edition

1138443646, 978-1138443648

More Books

Students also viewed these Accounting questions