Paart-1 | ||||||
Standard | Standard | Standard | ||||
Quantity or Hours | Price or Rate | Cost | ||||
Alpha6: | ||||||
Direct materials-X442 | 2.5 | kilos | $3.20 | per kilo | $8.00 | |
Direct materials-Y661 | 2.5 | litres | $1.40 | per litre | $3.50 | |
Direct labor-Sintering | 0.2 | hours | $23.00 | per hour | $4.60 | |
Direct labor-Finishing | 0.8 | hours | $22.00 | per hour | $17.60 | |
Total | $33.70 | |||||
Zeta7: | ||||||
Direct materials-X442 | 4.5 | kilos | $3.20 | per kilo | $14.40 | |
Direct materials-Y661 | 4 | litres | $1.40 | per litre | $5.60 | |
Direct labor-Sintering | 0.4 | hours | $23.00 | per hour | $9.20 | |
Direct labor-Finishing | 1.2 | hours | $22.00 | per hour | $26.40 | |
Total | $55.60 |
Part-2
Part-2 |
2. Material price variance = [SP-AP] x AQ purchased |
Material X442 = [$3.20 - $3.40] x 15800 = $3160 U |
Material Y661 = [$1.40 - $1.30] x 16800 = $1680 F |
Material quantity variance = [SQ-AQ used] x SP |
Material X442 = (((2.5 x 2400) + (4.5 x 1000)) - 10300) x 3.20 = $640 F |
Material Y661 = (((2.5 x 2400) + (4 x 1000)) - 14800) x 1.40 = $6720 U |
* X442 Actual Price per Kilos = 53720/15800=$3.40 |
**Y661, Actual Price Per Litre = 21840/16800=$1.30/ Litre |
Direct material variance - Material X442 | |
Material price variance | 3160U |
Material quantity variance | 640F |
Direct material variance - Material Y661 | |
Material price variance | 1680F |
Material quantity variance | 6720U |
Part-3
Part-3 |
3. Direct labor rate variance = [SR-AR] x AH worked |
Sintering = [23 - 25] x 1380 = $2760 U |
Finishing = [22 - 24] x 3030 = $6060 U |
*Actual Rate/ Hour for Sintering :- $34500/1380=$25 |
**Actual Rate/ Hour for Finishing :- $72720/3030=$24 |
Direct labor efficiency variance = [SH-AH] x SR |
Sintering = (((0.20 x 2400) + (0.40 x 1000)) - 1380) x 23 = $11500 U |
Finishing = (((0.80 x 2400) + (1.20 x 1000)) - 3050) x 22 = $1540F F |
Direct labor variances - Sintering: |
Labor rate variance |
Labor efficiency variance |
Direct labor variances - Finishing: |
Labor rate variance |
Labor efficiency variance |
Mickley Corporation produces two products, Alphabs and Zeta7s, which pass through two operations, Sintering and Finishing....
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 Alpha 6 Zeta 7 Raw Material X442 Y661 2.5 kilos 2.5 liters 4.5 kilos 4.5 liters Standard Labor Time Sintering Finishing 0.40 hours 0.90 hours 0.35 hours 0.80 hours Information relating to materials purchased...
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 Alpha 6 Zeta7 Raw Material X442 Y661 2.0 kilos 3.4 liters 4.0 kilos 5.0 liters Standard Labor Time Sintering Finishing 0.20 hours 0.80 hours 0.25 hours 0.90 hours Information relating to materials purchased and...
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 Alpha 6 zetat Raw Material X442 Y561 3.0 kilos 2.0 liters 5.0 kilos 5.2 liters Standard Labor Time Finishing 2.40 hours 1.00 hours 2.se hours 1.20 hours Information relating to materials purchased and materials...
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 Alpha Zeta 7 Raw Material X442 Y661 2.0 kilos 1.5 liters 4.0 kilos 3.0 liters Standard Labor Time Sintering Finishing 0.30 hours 0.90 hours 0.40 hours 1.00 hours Information relating to materials purchased...
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 Alpha 6 Zeta7 Raw Material X442 Y661 2.0 kilos 1.5 liters 3.0 kilos 4.5 liters Standard Labor Time Sintering Finishing 0.10 hours 1.00 hours 0.30 hours 0.80 hours Information relating to materials purchased...
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 Alpha 6 Zeta Raw Material X442 7661 3.0 kilos 2.0 liters 5.0 kilos 5,0 liters Standard Labor Time Sintering Finishing 0.40 hours 1.00 hours 0.50 hours 1.20 hours Information relating to materials purchased and...
00 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): points Product Alpha 6 Zeta 7 Raw Material X442 Y661 1.8 kilos 2.4 liters 4.4 kilos 4.4 liters Standard Labor Time Sintering Finishing 0.20 hours 1.20 hours 0.40 hours 0.80 hours eBook Information relating...
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 Alpha 6 Zeta 7 Raw Material X442 Y661 1.5 kilos 2.2 liters 3.5 kilos 4.4 liters Standard Labor Time Sintering Finishing 0.40 hours 0.80 hours 0.30 hours 0.90 hours Information relating to materials purchased...
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 Alpha 6 Zeta 7 Raw Material X442 Y661 2.0 kilos 1.5 liters 3.0 kilos 4.5 liters Standard Labor Time Sintering Finishing 0.10 hours 1.00 hours 0.30 hours 0.80 hours Information relating to materials purchased...
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 Alpha 6 Zeta Raw Material X442 661 3.0 kilos 2.0 liters 5.0 kilos 4.0 liters Standard Labor Time Sintering Finishing 0.30 hours 1.20 hours 0.40 hours 1.20 hours Information relating to materials purchased and...