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

Alpha62.0 kilos 1.5 liters 0.30 hours 0.90 hours

Zeta74.0 kilos 3.0 liters 0.40 hours 1.00 hours

Information relating to materials purchased and materials used in production during May follows:

Material Purchases Purchase Cost Standard Price Used in Production

X44214,400 kilos $ 59,040 $ 3.90 per kilo 8,900 kilos

Y66115,400 liters $ 26,180 $ 1.80 per liter 13,400 liters

The following additional information is available:

The company recognizes price variances when materials are purchased.

The standard labor rate is $20.00 per hour in Sintering and $19.00 per hour in Finishing.

 

During May, 1,200 direct labor-hours were worked in Sintering at a total labor cost of $27,480, and 2,890 direct labor-hours were worked in Finishing at a total labor cost of $60,690. 

 

Production during May was 1,900 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.