Problem 9-21 Multiple Products, Materials, and Processes [LO9-4, 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 Alphab Zeta Raw Material X442 Y661 1.5 kilos 2.0 liters 3.5 kilos 4.0 liters Standard Labor Time Sintering Finishing 0.20 hours 0.80 hours 0.40 hours 0.99 hours Information relating to materials purchased and materials used in production during May follows: Material X442 Y661 Purchase Purchases Cost 14,300 kilos $57,200 15,300 liters $24,480 Standard Price $3.80 per kilo $1.70 Used in Production 8,800 kilos 13,300 liters The following additional information is available: a. The company recognizes price variances when materials are purchased b. The standard labor rate is $20.00 per hour in Sintering and $18.50 per hour in Finishing c. During May, 1,300 direct labor hours were worked in Sintering at a total labor cost of $29,640, and 2,880 direct labor-hours were worked in Finishing at a total labor cost of $59,040 d. Production during May was 1,800 Alphabs and 1,800 Zeta 7s. 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 the standard cost card for each product, showing the standard cost of direct materials and direct labor. (Rour answers to 2 decimal places.) Standard Quantity or Hours Standard Price or Rate Standard Cost Kolos liters Alpha Direct materials-X442 Direct materials-4001 Direct labor-Sintering Direct labor-Finishing Total per kilo per liter per hour per hour hours hours Zeta Direct materials-X442 kilos liters per kilo per liter per hour per hour Direct materials-7661 Direct laborSintering Direct labor-Finishing Total hours hours 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 Materiais quantity variance Direct Materials Variances Material Y001: Materials price variance Materials quantity variance Compute the labor rate and efficiency variances for each operation. (Indicates the effect of each variance by selecting "F" for favorable, U for unfavorable, and "None" for no effect (i.ex zero variance). Input all amounts as positive values.) Direct Labor Variances-Sintering: Labor rate variance Labor efficiency variance Direct Labor Variances-Finishing: Labor rate variance Labor efficiency variance
