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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 Standard Labor Time Finishing Product Y661 Alpha6 X442 2.5 kilos 2.5 liters 0.80 hours Zeta7 4.5 kilos 4.0 liters 1.20 hours Information relating to materials purchased and materials used in production during May follows: Material Standard Price $3.20 per kilo X442 Used in Production 10,300 kilos 14,800 liters Y661 $ 1.40 per liter Sintering 0.20 hours 0.40 hours Purchases 15,800 kilos 16,800 liters Purchase Cost $ 53,720 $ 21,840 The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $23.00 per hour in Sintering and $22.00 per hour in Finishing. c. During May, 1,380 direct labor-hours were worked in Sintering at a total labor cost of $34,500, and 3,030 direct labor- hours were worked in Finishing at a total labor cost of $72,720. d. Production during May was 2,400 Alpha6s and 1,000 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 Standard Labor Time Finishing Product Y661 Alpha6 X442 2.5 kilos 2.5 liters 0.80 hours Zeta7 4.5 kilos 4.0 liters 1.20 hours Information relating to materials purchased and materials used in production during May follows: Material Standard Price $3.20 per kilo X442 Used in Production 10,300 kilos 14,800 liters Y661 $ 1.40 per liter Sintering 0.20 hours 0.40 hours Purchases 15,800 kilos 16,800 liters Purchase Cost $ 53,720 $ 21,840 The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $23.00 per hour in Sintering and $22.00 per hour in Finishing. c. During May, 1,380 direct labor-hours were worked in Sintering at a total labor cost of $34,500, and 3,030 direct labor- hours were worked in Finishing at a total labor cost of $72,720. d. Production during May was 2,400 Alpha6s and 1,000 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Alphab: Direct materials-X442 Direct materials-Y661 Direct labor-Sintering Direct labor-Finishing Total Zeta7: Direct materials-X442 Direct materials-Y661 Direct labor-Sintering Direct labor-Finishing Total Req 1 Req 2 Req 2 Direct Materials Variances-Material X442 Materials price variance Materials quantity variance Direct Mañarials Variances Material Y661: Materials price variance Materiais quantity an Standard Quantity or Hours Complete this question by entering your answers in the tabs below. Direct Labor Variances-Sintering Labor rate variance Req3 Reg 3 Labor efficiency variance Direct Labor Variances-Finishing Labor rate variance Labor efficiency variance kilos liters hours hours $ (Reg 2 $ $ $ Reg 1 Compute the materials price and quantity variances for each material. [Indicate the effect of each variance by sele favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance). Input all amounts as positive values.) Standard Price or Rate (Reg 3.20 per kilo 1.40 per liter 23.00 per hour 22.00 per hour kilos $ 3.20 per kilo liters $ 1.40 per liter hours $ 23.00 per hour hours $ 22.00 per hour $ Reg 3 > $ Standard Cost 0.00 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 (Le, zero variance). Input all amounts as positive values.) 0.00
Transcribed Image Text:Alphab: Direct materials-X442 Direct materials-Y661 Direct labor-Sintering Direct labor-Finishing Total Zeta7: Direct materials-X442 Direct materials-Y661 Direct labor-Sintering Direct labor-Finishing Total Req 1 Req 2 Req 2 Direct Materials Variances-Material X442 Materials price variance Materials quantity variance Direct Mañarials Variances Material Y661: Materials price variance Materiais quantity an Standard Quantity or Hours Complete this question by entering your answers in the tabs below. Direct Labor Variances-Sintering Labor rate variance Req3 Reg 3 Labor efficiency variance Direct Labor Variances-Finishing Labor rate variance Labor efficiency variance kilos liters hours hours $ (Reg 2 $ $ $ Reg 1 Compute the materials price and quantity variances for each material. [Indicate the effect of each variance by sele favorable, "U" for unfavorable, and "None" for no effect (ie, zero variance). Input all amounts as positive values.) Standard Price or Rate (Reg 3.20 per kilo 1.40 per liter 23.00 per hour 22.00 per hour kilos $ 3.20 per kilo liters $ 1.40 per liter hours $ 23.00 per hour hours $ 22.00 per hour $ Reg 3 > $ Standard Cost 0.00 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 (Le, zero variance). Input all amounts as positive values.) 0.00
ks 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): Product Alpha6 Zeta7 Y661 X442 2.5 kilos 2.5 liters 4.5 kilos 4.0 liters Material X442 Y661 Raw Material Information relating to materials purchased and materials used in production during May follows: Standard Price $ 3.20 per kilo Used in Production 10,300 kilos 14,800 liters $ 1.40 per liter Purchases 15,800 kilos 16,800 liters Purchase Cost $ 53,720 $ 21,840 The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $23.00 per hour in Sintering and $22.00 per hour in Finishing. c. During May, 1,380 direct labor-hours were worked in Sintering at a total labor cost of $34,500, and 3,030 direct labor- Req 1 Standard Labor Time Finishing hours were worked in Finishing at a total labor cost of $72,720. d. Production during May was 2,400 Alpha6s and 1,000 Zeta7s. Sintering 0.20 hours 0.40 hours 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. Alpha6: Complete this question by entering your answers in the tabs below. Req 2 Direct materials-X442 Direct materials-Y661 Direct labor-Sintering Direct labor-Finishing Total Zeta7: 0.80 hours 1.20 hours Req 3 Direct materials-X442 Direct materials-Y661 Direct labor-Sintering 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 $ kilos liters $ hours $ hours $ Standard Price or Rate 3.20 per kilo 1.40 per tor 23.00 per hour 22.00 per hour kilos $ 3.20 per kilo tors 1.40 per ter $ hours $23.00 per hour Standard Cost $ 0.00
Transcribed Image Text:ks 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): Product Alpha6 Zeta7 Y661 X442 2.5 kilos 2.5 liters 4.5 kilos 4.0 liters Material X442 Y661 Raw Material Information relating to materials purchased and materials used in production during May follows: Standard Price $ 3.20 per kilo Used in Production 10,300 kilos 14,800 liters $ 1.40 per liter Purchases 15,800 kilos 16,800 liters Purchase Cost $ 53,720 $ 21,840 The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $23.00 per hour in Sintering and $22.00 per hour in Finishing. c. During May, 1,380 direct labor-hours were worked in Sintering at a total labor cost of $34,500, and 3,030 direct labor- Req 1 Standard Labor Time Finishing hours were worked in Finishing at a total labor cost of $72,720. d. Production during May was 2,400 Alpha6s and 1,000 Zeta7s. Sintering 0.20 hours 0.40 hours 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. Alpha6: Complete this question by entering your answers in the tabs below. Req 2 Direct materials-X442 Direct materials-Y661 Direct labor-Sintering Direct labor-Finishing Total Zeta7: 0.80 hours 1.20 hours Req 3 Direct materials-X442 Direct materials-Y661 Direct labor-Sintering 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 $ kilos liters $ hours $ hours $ Standard Price or Rate 3.20 per kilo 1.40 per tor 23.00 per hour 22.00 per hour kilos $ 3.20 per kilo tors 1.40 per ter $ hours $23.00 per hour Standard Cost $ 0.00
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