Question

Ch. 10: Homework Saved 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 Zeta7 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 to materials purchased and materials used in production during May follows: References Material X442 Y661 Purchases 15,100 kilos 16,100 liters Purchase Cost $40,770 $22,540 Standard Price $2.50 per kilo $1.50 per liter Used in Production 9,600 kilos 14,100 liters The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $22.00 per hour in Sintering and $21.50 per hour in Finishing. c. During May, 1,300 direct labor-hours were worked in Sintering at a total labor cost of $30,680, and 2,960 direct labor-hours were worked in Finishing at a total labor cost of $69,560. d. Production during May was 1,700 Alphabs and 1,550 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. Reg 1 Reg 2 Req3 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.)

Answer 1

Part 1 : standard Quantity or hours standard price or rate standard cost c=a*b Alpha 6: 1.80 kilos 2.40 liters 0.20 hours 1.20 hours 2.50 per kilos 1.50 per liters 22.00 per hour 21.50 per hour 4.50 3.60 4.40 25.80 38.30 Direct material - X442 Direct material - Y661 Direct - Sintering Direct- Finishing Total Zeta 7: Direct material - X442 Direct material - Y661 Direct - Sintering Direct - Finishing Total 4.40 kilos 4.40 liters 0.40 hours 0.80 hours 2.50 per kilos 1.50 per liters 22.00 per hour 21.50 per hour 11.00 6.60 8.80 17.20 43.60

Part 2: DIRECT MATERIAL - X442 quantity RATE per unit TOTAL STANDARD 9,880.00 2.50 24,700.00 (1700* 1.8+1550*4.4) ACTUAL 9,600 25,920.00 2.70 40770/15100 material Purchase price variance (SP-AP) *QP |(2.5-2.7)* 15100 material QUANTITY variance (SQ - AQ)X SP (9880-9600)*2.5 | 28600 700 F DIRECT MATERIAL - Y661 quantity STANDARD 10,900.00 |(1700*2.4+1550*4.4) RATE per unit TOTAL 1.50 per 1,50|1A 16.350.00 ACTUAL 14,100 19,740.00 1.40 22540/16100 material price variance material QUANTITY variance (SP-AP) *QP (1.5-1.4)* 16100 (SQ - AQ)X SP|(10900-14100)*1.5 1530 F | 4,800 U

Part 3: DIRECT LABOUR- Sintering hours rate total STANDARD 960.00 22.00 21, 120.00 (1700*0.2+1550*0.4) ACTUAL 1300 23.60 30,680.00 30680/1300 LABOUR RATE VARIANCE (SR - ARXAH LABOUR EFFICIANCY VARIANCE (SH - AH) X SR (22-23.6)*1300 1960-1300)*22 2,080 | U | ,480 U | 7 total 21.50 70,520.00 DIRECT LABOUR-finishing hours rate STANDARD 3,280.00 (1700*1.2+1550*0.8) ACTUAL 2960 69560/2960 23.50 69,560.00 LABOUR RATE VARIANCE (SR - AR)XAH LABOUR EFFICIANCY VARIANCE (SH - AH) X SR CE |(21.5-23.5)*2960 (3280-2960)*21.5 5,920 6,880 U F & AEGE QTY PURCHASED ACTUAL QTY STANDARD PRICE ACTUAL PRICE STANDARD QTY STANDARD RATE ACTUAL RATE STANDARD HOURS ACTUAL HOURS