Need help with req. 2-3
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 Raw Material X442 Y661 2.0 kilos 1.5 liters 3.8 kilos 2.5 liters Standard Labor Time Sintering Finishing 0.10 hours 0.80 hours 0.45 hours 8.90 hours Information relating to materials purchased and materials used in production during May follows Material X442 Y661 Purchases 14,800 kilos 15,800 liters Purchase Cost 566,600 $23,700 Standard Price $4.30 per kilo $1.60 per liter Used in Production 9,300 kilos 13.800 liters The following additional information is available: a. The company recognizes price variances when materials are purchased b. The standard labor rate is $22.00 per hour in Sintering and $2100 per hour in Finishing. c. During May, 1,220 direct labor-hours were worked in Sintering at a total labor cost of $28,060, and 2,930 direct labor-hours were worked in Finishing at a total labor cost of $67,390 d. Production during May was 2,300 Alpha6s and 1,600 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 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 (ie, 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. 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 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 (.e., zero variance). Input all amounts as positive values.) Direct Labor VariancesSintering Labor rate variance Labor efficiency variance Direct Labor Variances-Finishing Labor rate variance Labor efficiency variance
