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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 Y661 X442 1.5 kilos 2.2 liters 3.5 kilos 4.4 liters Standard Labor Time Finishing Product Alpha6 Zeta7 Information relating to materials purchased and materials used in production during May follows: Material X442 Standard Price $ 3.60 per kilo $ 1.50 per liter Used in Production 8,600 kilos 13,100 liters Y661 Sintering 0.40 hours 0.80 hours 0.30 hours 0.90 hours Purchases 14, 100 kilos 15,100 liters Purchase Cost $53,580 $ 21,140 The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $18.00 per hour in Sintering and $18.00 per hour in Finishing. c. During May, 1,250 direct labor-hours were worked in Sintering at a total labor cost of $28,250, and 2,860 direct labor-hours were worked in Finishing at a total labor cost of $57,200. d. Production during May was 1,600 Alpha6s and 1,800 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.

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 Y661 X442 1.5 kilos 2.2 liters 3.5 kilos 4.4 liters Standard Labor Time Finishing Product Alpha6 Zeta7 Information relating to materials purchased and materials used in production during May follows: Material X442 Standard Price $ 3.60 per kilo $ 1.50 per liter Used in Production 8,600 kilos 13,100 liters Y661 Sintering 0.40 hours 0.80 hours 0.30 hours 0.90 hours Purchases 14, 100 kilos 15,100 liters Purchase Cost $53,580 $ 21,140 The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $18.00 per hour in Sintering and $18.00 per hour in Finishing. c. During May, 1,250 direct labor-hours were worked in Sintering at a total labor cost of $28,250, and 2,860 direct labor-hours were worked in Finishing at a total labor cost of $57,200. d. Production during May was 1,600 Alpha6s and 1,800 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.

Managerial Accounting
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 21E: The Converting Department of Tender Soft Tissue Company uses the weighted average method and had...
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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 Product Alpha6 Zeta7 Finishing 0.80 hours 0.90 hours Information relating to materials purchased and materials used in production during May follows: Standard Price $ 3.60 per kilo Used in Production 8,600 kilos 13,100 liters $ 1.50 per liter Standard Labor Time Y661 X442 1.5 kilos. 2.2 liters 3.5 kilos 4.4 liters Material X442 Y661 Sintering 0.40 hours 0.30 hours Purchases 14,100 kilos 15,100 liters Purchase Cost $ 53,580 $ 21,140 The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $18.00 per hour in Sintering and $18.00 per hour in Finishing. c. During May, 1,250 direct labor-hours were worked in Sintering at a total labor cost of $28,250, and 2,860 direct labor-hours were worked in Finishing at a total labor cost of $57,200. d. Production during May was 1,600 Alpha6s and 1,800 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.
Transcribed Image Text: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 Product Alpha6 Zeta7 Finishing 0.80 hours 0.90 hours Information relating to materials purchased and materials used in production during May follows: Standard Price $ 3.60 per kilo Used in Production 8,600 kilos 13,100 liters $ 1.50 per liter Standard Labor Time Y661 X442 1.5 kilos. 2.2 liters 3.5 kilos 4.4 liters Material X442 Y661 Sintering 0.40 hours 0.30 hours Purchases 14,100 kilos 15,100 liters Purchase Cost $ 53,580 $ 21,140 The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $18.00 per hour in Sintering and $18.00 per hour in Finishing. c. During May, 1,250 direct labor-hours were worked in Sintering at a total labor cost of $28,250, and 2,860 direct labor-hours were worked in Finishing at a total labor cost of $57,200. d. Production during May was 1,600 Alpha6s and 1,800 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.
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