Mickley Corporation produces two products, Alphabs 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): Product Alpha 6 Zeta 7 Raw Material X442 7661 2.0 kilos 1.4 liters 4.0 kilos 3.4 liters Standard Labor Time Sintering Finishing 0.50 hours 0.90 hours 0.10 hours 0.90 hours Information relating to materials purchased and materials used in production during May follows: Material X442 Y661 Purchase Purchases Cost 14,600 kilos $62,780 15,600 liters $21,840 Standard Price $4.10 per kilo $1.50 per liter Used in Production 9,100 kilos 13,600 liters The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $15.00 per hour in Sintering and $20.00 per hour in Finishing. c. During May, 1,300 direct labor-hours were worked in Sintering at a total labor cost of $30,030, and 2,910 direct labor-hours were worked in Finishing at a total labor cost of $64,020. d. Production during May was 2,100 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. Required 1 Required 2 Required 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 Standard Standard Quantity or Hours Price or Rate Cost Alphab: Direct materialsX442 2.00 kilos $ 4.10 per kilo $ 8.20 Direct materialsY661 1.40 liters $ 1.50 per liter 2.10 Direct laborSintering 0.50 hours $15.00 per hour 7.50 Direct labor-Finishing 0.90 hours $20.00 per hour 18.00 Total $ 35.80 Zeta: Direct materials-X442 4.00 kilos $ 4.10 per kilo $ 16.40 Direct materials-Y661 3.40 liters $ 1.50 per liter 5.10 Direct laborSintering 0.10 hours $15.00 per hour 1.50 Direct labor-Finishing 0.90 hours $ 20.00 per hour 18.00 Total $ 41.00 Required 1 Required 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 VariancesMaterial X442: Materials price variance Materials quantity variance Direct Materials VariancesMaterial Y661: Materials price variance Materials quantity variance Required 1 Required 2 Required 3 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 VariancesSintering: Labor rate variance Labor efficiency variance Direct Labor VariancesFinishing: Labor rate variance Labor efficiency variance
