Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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 standards for each product (on a per unit basis) are as follows: Standard Labor Time Sintering Raw Material Product Alpha6 Zeta7 X442 Y661 Finishing 2.5 kilos 2.5 liters 4.5 kilos 5.0 liters 0.10 hours 1.00 hours 0.30 hours 1.20 hours Information relating to materials purchased and used in production during May follows: Material X442 Purchases 15,200 kilos 16,200 liters Purchase Cost $ 42,560 $ 24,300 Standard Price $ 2.60 per kilo $ 1.60 per liter Used in Production 9,700 kilos 14,200 liters Y661 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 $21.00 per hour in Finishing. c. During May, 1,320 direct labor-hours were worked in Sintering at a total labor cost of $31,680, and 2,970 direct labor-hours were worked in Finishing at a total labor cost of $68,310. d. Production during May was 1,800 Alpha6s and 1,200 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. Required 1 Required 2 Required 3 Complete the standard cost card for each product, showing the standard cost of direct materials and direct labor. Note: 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 2.50 kilos per kilo liters per liter hours per hour hours per hour $ 0.00 Zeta7: Direct materials-X442 kilos per kilo Direct materials-Y661 liters per liter Direct labor-Sintering hours per hour Direct labor-Finishing hours per hour Total $ 0.00 Required 1. Required 2 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 standards for each product (on a per unit basis) are as follows: Standard Labor Time Sintering Raw Material Product Alpha6 Zeta7 X442 Y661 Finishing 2.5 kilos 2.5 liters 4.5 kilos 5.0 liters 0.10 hours 1.00 hours 0.30 hours 1.20 hours Information relating to materials purchased and used in production during May follows: Material X442 Purchases 15,200 kilos 16,200 liters Purchase Cost $ 42,560 $ 24,300 Standard Price $ 2.60 per kilo $ 1.60 per liter Used in Production 9,700 kilos 14,200 liters Y661 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 $21.00 per hour in Finishing. c. During May, 1,320 direct labor-hours were worked in Sintering at a total labor cost of $31,680, and 2,970 direct labor-hours were worked in Finishing at a total labor cost of $68,310. d. Production during May was 1,800 Alpha6s and 1,200 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. Required 1 Required 2 Required 3 Complete the standard cost card for each product, showing the standard cost of direct materials and direct labor. Note: 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 2.50 kilos per kilo liters per liter hours per hour hours per hour $ 0.00 Zeta7: Direct materials-X442 kilos per kilo Direct materials-Y661 liters per liter Direct labor-Sintering hours per hour Direct labor-Finishing hours per hour Total $ 0.00 Required 1. Required 2
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Many developing countries claim that it is now "their turn" to pollute if they want to develop economically. Developed countries are concerned that allowing this will seriously endanger the future of...
-
the juncure of the wbs element and the contractor's organzational structure is where the control accounts is established
-
Job Ad and Cover Letter This assignment is worth 1 0 % of your final mark and is due Week 8 . Goal The goal of this assignment is to research a job ad and match your skills to the qualifications...
-
You have this information r*=2.5%, inflation premium =3%, default risk premium=3.5%, liquidity premium =2% and maturity risk premium =1.5%.What is the treasury bill rate?
-
Suppose that we want to use the normal approximation to the binomial distribution to determine b(1;150,0.05). (a) Based on the rule of thumb on page 192, would we be justified in using the...
-
How do the eight general environmental factors affect the five industry forces?
-
What is Russias total for Groups A through D? Use the following balance of payments data for Russia (Russian Federation) from the IMF to answer this problem. Assumptions (million US$) 2000 2001 2002...
-
The production function is Q = ALa Kb, where a > 0 and b > 0. a. The marginal product of labor is MPL = __________________ . b. The marginal product of capital is MPK = __________________ . c. The...
-
A Company has been spending $ 10,000 for buying inventories. Due to a new machinery purchased by the company, the company is expected to spend around $ 15,000 additional for inventories. The...
-
Suppose your firm has decided to use a divisional WACC approach to analyze projects. The firm currently has four divisions, A through D, with average betas for each division of 0.7, 1.0, 1.4, and...
-
Harry, a university student, was happy. He had just been able to find a part-time job. The job was not that interesting- working on the factory floor- but at least he was going to make a bit of money...
-
Security Lieutenant (manager) for hospital university will over 50 site in PA, a few in NJ, and soon coming DE. Position put out for Center City Philadelphia. It primarily focuses on but not limited...
-
The admissions director at a local university has noticed a steady decrease in applications to the university. She notices that the decrease began when the university implemented admission standards...
-
A. What is Alpha One's NOPAT? Why does NOPAT differ from the earnings after taxes? B. Estimate the effective before-tax cost of the long-term debt. c. Estimate the effective after-tax cost of the...
-
A university wants to improve its student enrollment process. The president reads about the PDSA cycle and decides to implement it . What is the sequence of steps the president should take? Put the...
-
Hajoca Corporation is a Pennsylvania - based corporation and a large wholesale distributor of plumbing, heating, and industrial supplies. According to one of its employees, "When we moved from our...
-
What is the drawback of company rankings based on EVA?
-
If EPS rises after a deal, does this necessarily imply value creation?
-
Can value be created by developing new products and new markets or by reducing costs?
Study smarter with the SolutionInn App