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 Raw Material X442 Alpha6 2.5 kilos 2.5 Zeta7 4.5 kilos 5.5 Y661 Standard Labor Time Sintering Finishing liters 0.40 hours 1.20 hours liters 0.40 hours 0.80 hours Information relating to materials purchased and materials used in production during May follows: Used in Production 9,900 kilos Material X442 Y661 Purchases Purchase Cost Standard Price $ 15,400 kilos 46,200 $ 16,400 liters 27,880 $ per 2.80 kilo $ per 1.80 liter 14,400 liters The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $21.00 per hour in Sintering and $20.00 per hour in Finishing. c. 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. d. 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 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 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

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 Raw Material X442 Alpha6 2.5 kilos 2.5 Zeta7 4.5 kilos 5.5 Y661 Standard Labor Time Sintering Finishing liters 0.40 hours 1.20 hours liters 0.40 hours 0.80 hours Information relating to materials purchased and materials used in production during May follows: Used in Production 9,900 kilos Material X442 Y661 Purchases Purchase Cost Standard Price $ 15,400 kilos 46,200 $ 16,400 liters 27,880 $ per 2.80 kilo $ per 1.80 liter 14,400 liters The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $21.00 per hour in Sintering and $20.00 per hour in Finishing. c. 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. d. 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. Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 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 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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...

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