Mickley Corporation produces two products, Alpha6s 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):     Raw Material   Standard Labor Time Product X442 Y661   Sintering Finishing Alpha6 2.0 kilos 1.5 liters   0.10 hours 0.80 hours Zeta7 3.0 kilos 2.5 liters   0.45 hours 0.90 hours     Information relating to materials purchased and materials used in production during May follows:   Material Purchases Purchase Cost Standard Price Used in Production X442 14,800 kilos $66,600 $4.30 per kilo 9,300 kilos Y661 15,800 liters $23,700 $1.60 per liter 13,800 liters     The following additional information is available:   The company recognizes price variances when materials are purchased. The standard labor rate is $22.00 per hour in Sintering and $21.00 per hour in Finishing. 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. Production during May was 2,300 Alpha6s and 1,600 Zeta7s. requied: 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 Alpha6:           Direct materials-X442   kilos   per kilo   Direct materials-Y661   liters   per liter   Direct labor-Sintering   hours   per hour   Direct labor-Finishing   hours   per hour   Total         $0.00 Zeta7:           Direct materials-X442   kilos   per kilo   Direct materials-Y661   liters   per liter   Direct labor-Sintering   hours   per hour   Direct labor-Finishing   hours   per hour   Total         $0.00 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 Variances—Material X442:     Materials price variance     Materials quantity variance     Direct Materials Variances—Material Y661:     Materials price variance     Materials quantity variance   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 Variances—Sintering:     Labor rate variance     Labor efficiency variance     Direct Labor Variances—Finishing:     Labor rate variance     Labor efficiency variance

Question

Mickley Corporation produces two products, Alpha6s 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):

 

  Raw Material   Standard Labor Time
Product X442 Y661   Sintering Finishing
Alpha6 2.0 kilos 1.5 liters   0.10 hours 0.80 hours
Zeta7 3.0 kilos 2.5 liters   0.45 hours 0.90 hours
 

 

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

 

Material Purchases Purchase Cost Standard
Price
Used in
Production
X442 14,800 kilos $66,600 $4.30 per kilo 9,300 kilos
Y661 15,800 liters $23,700 $1.60 per liter 13,800 liters
 

 

The following additional information is available:

 

  1. The company recognizes price variances when materials are purchased.
  2. The standard labor rate is $22.00 per hour in Sintering and $21.00 per hour in Finishing.

  3. 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.

  4. Production during May was 2,300 Alpha6s and 1,600 Zeta7s.

requied:

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
Alpha6:          
Direct materials-X442   kilos   per kilo  
Direct materials-Y661   liters   per liter  
Direct labor-Sintering   hours   per hour  
Direct labor-Finishing   hours   per hour  
Total         $0.00
Zeta7:          
Direct materials-X442   kilos   per kilo  
Direct materials-Y661   liters   per liter  
Direct labor-Sintering   hours   per hour  
Direct labor-Finishing   hours   per hour  
Total         $0.00

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 Variances—Material X442:    
Materials price variance    
Materials quantity variance    
Direct Materials Variances—Material Y661:    
Materials price variance    
Materials quantity variance  

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 Variances—Sintering:    
Labor rate variance    
Labor efficiency variance    
Direct Labor Variances—Finishing:    
Labor rate variance    
Labor efficiency variance  

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