Question

Please help me out!!!

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 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 materials used in production during May follows: Material X442 Y661 Purchase Purchases Cost 14,900 kilos $37,250 15,900 liters $19,080 Standard Price $2.30 per kilo $1.30 per liter Used in Production 9,400 kilos 13,900 liters 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 $19.50 per hour in Finishing. c. During May, 1,250 direct labor-hours were worked in Sintering at a total labor cost of $29,000, and 2,940 direct labor-hours were worked in Finishing at a total labor cost of $63,210. d. Production during May was 1,500 Alphabs and 1,000 Zeta7s.

Answer 1

Part 1 : standard Quantity or hours standard price or rate standard cost c=a*b Alpha 6: 3.00 kilos 2.00 liters 0.30 hours 1.20 hours 2.30 per kilos 1.30 per liters 23.00 per hour 19.50 per hour 6.90 2.60 6.90 23.40 39.80 Direct material - X442 Direct material - Y661 Direct - Sintering Direct- Finishing Total Zeta 7: Direct material - X442 Direct material - Y661 Direct - Sintering Direct - Finishing Total 5.00 kilos 4.00 liters 0.40 hours 1.20 hours 2.30 per kilos 1.30 per liters 23.00 per hour 19.50 per hour 11.50 5.20 9.20 23.40 49.30

Part 2: DIRECT MATERIAL - X442 quantity RATE per unit TOTAL STANDARD 9,500.00 2.30 21,850.00 (1500* 3+1000*5) ACTUAL 9,400 23,500.00 2.50 37250/14900 material Purchase price variance (SP-AP) *QP |(2.3-2.5)* 14900 material QUANTITY variance (SQ - AQ)X SP (9500-9400)*2.3 28600 230 F DIRECT MATERIAL - Y661 quantity STANDARD 7,000.00 |(1500*2+1000*4) RATE per unit TOTAL 1. 30 9 ,100.00 ACTUAL 16,680.00 13,900 1.20 19080/15900 material price variance material QUANTITY variance (SP-AP) *QP (1.3-1.2)* 15900 (SQ - AQ)X SP|(7000-13900)* 1.3 1530 F 8,970 u

Part 3: DIRECT LABOUR- Sintering hours rate total STANDARD 850.00 23.00 19,550.00 (1500*0.3+1000*0.4) ACTUAL 23.20 29,000.00 1250 29000/1250 LABOUR RATE VARIANCE (SR - ARXAH LABOUR EFFICIANCY VARIANCE (SH - AH) X SR (23-23.2)* 1250 250 u (850-1250)*239,200U total 19.50 58,500.00 DIRECT LABOUR-finishing hours rate STANDARD 3,000.00 (1500*1.2+1000*1.2) ACTUAL 2940 63210/2940 21.50 63,210.00 LABOUR RATE VARIANCE (SR - ARXAH LABOUR EFFICIANCY VARIANCE (SH - AH) XSR (19.5-21.5)* 294 (3000-2940)*19. 5,880U 1,170 FI QTY PURCHASED ACTUAL QTY STANDARD PRICE ACTUAL PRICE STANDARD QTY STANDARD RATE ACTUAL RATE STANDARD HOURS ACTUAL HOURS