Answered step by step
Verified Expert Solution
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
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 Product Alpha6 Zeta7 X442 1.8 kilos 3.0 kilos Y661 2.0 liters 4.5 liters Standard Labor Time Sintering 0.20 hours 0.35 hours Finishing 0.80 hours 0.90 hours Information relating to materials purchased and materials used in production during May follows: Purchase Cost Standard Price Material X442 Y661 Purchases 14,500 kilos $52,200 $3.50 per kilo 15,500 liters $20,925 $1.40 per liter Used in Production 8,500 kilos 13,000 liters The following additional information is available: a. The company recognizes price variances when materials are purchased b. The standard labor rate is $19.80 per hour in Sintering and $19.20 per hour in Finishing C. During May, 1,200 direct labor-hours were worked in Sintering at a total labor cost of $27,000, and 2,850 direct labor-hours were worked in Finishing at a total labor cost of $59,850 d. Production during May was 1,500 Alpha6s and 2,000 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 . Compute the labor rate and efficiency variances for each operation Complete this question by entering your answers in the tabs below. Required 1Required 2Required 3 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 Quantity or Hours Standard Price or Rate Standard Cost Alpha6 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 Zeta7 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 Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1Required 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 (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 Required 1 Required 3 Complete this question by entering your answers in the tabs below. Required 1Required 2Required3 Compute the labor rate and efficiency variances for each operation. (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 Labor Variances-Sintering Labor rate variance Labor efficiency variance Direct Labor Variances-Finishing: Labor rate variance Labor efficiency variance Required 2 Required 3
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started