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Problem 9-21 Multiple Products, Materials, and Processes (L09-4, LO9-5] Mickley Corporation produces two products, Alphabs and Zeta7s, which pass through two operations, Sintering and Finishing.

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Problem 9-21 Multiple Products, Materials, and Processes (L09-4, LO9-5] 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 Zeta Raw Material X442 Y661 2.5 kilos 2.5 liters 4.5 kilos 5.5 liters Standard Labor Time Sintering Finishing 0.40 hours 1.20 hours 0.40 hours 0.80 hours Information relating to materials purchased and materials used in production during May follows: Material X442 7661 Purchase Purchases Coat 15,400 kilos $ 46,200 16,400 liters $27.880 Standard Price $2.80 per kilo $1.80 per liter Used in Production 9,900 kilo 14,400 liters The following additional information is available: a. The company recognizes price variances when materials are purchased, b. The standard labor rate is $21.00 per hour in Sintering and $20.00 per hour in Finishing, c. During May, 1,350 direct labor-hours were worked in Sintering at a total labor cost of $33.210, and 2,990 direct labor-hours were worked in Finishing at a total labor cost of $65,780. d. Production during May was 2,000 Alpha6s and 1,200 Zeta7s, 6 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 Standard Quantity or Hours Standard Price or Rate Standard Cost kilos ok liters per kilo per liter per hour ht hours nces hours per hour Alphab: Direct materials-X442 Direct materialsY661 Direct laborSintering Direct labor-Finishing Total Zeta: Direct materials-X442 Direct materials-Y661 Direct labor-Sintering Direct labor-Finishing Total kilos per kilo liters per liter per hour hours hours per hour + Direct Materials VariancesMaterial X442: Materials price variance Materials quantity variance Direct Materials VariancesMaterial Y661: Materials price variance Materials quantity variance Direct Labor Variances-Sintering: Labor rate variance Labor efficiency variance Direct Labor VariancesFinishing: Labor rate variance Labor efficiency variance

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