Problem 9-21 Multiple Products, Materials, and Processes [LO9-4, LO9-5]

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):

	Raw Material			Standard Labor Time
Product	X442	Y661		Sintering	Finishing
Alpha6	2.5 kilos	2.5 liters		0.40 hours	1.20 hours
Zeta7	4.5 kilos	5.5 liters		0.40 hours	0.80 hours

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

Material	Purchases		Purchase Cost	Standard Price		Used in Production
X442	15,400	kilos	$46,200	$2.80	per kilo	9,900	kilos
Y661	16,400	liters	$27,880	$1.80	per liter	14,400	liters

The following additional information is available:

1. The company recognizes price variances when materials are purchased.

2. The standard labor rate is $21.00 per hour in Sintering and $20.00 per hour in Finishing.

3. 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.

4. Production during May was 2,000 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

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 Quantity or Hours Standard Price or Rate Standard Cost Alpha: Direct materials-X442 kilos per kilo Direct materialsY661 liters per liter hours per hour Direct laborSintering Direct laborFinishing hours per hour Total Zeta7: Direct materialsX442 kilos per kilo Direct materialsY661 liters per liter hours per hour Direct laborSintering Direct laborFinishing hours per hour Total Required 1 Required 2 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 Variances-Material Y661: Materials price variance Materials quantity variance Required 1 Required 2 Required 3 Required 1 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