Question

Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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 kilos liters hours hours per kilo per liter per hour per hour $ 0.00 Alpha6: 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 kilos liters per kilo per liter per hour per hour hours hours $ 0.00 Required 1 Required 2 >

Answer 1

1	Standard cost card:
				Standard quantity or hours		Standard price or rate		Standard cost
	Alpha6:
	Direct materials-X442			3	kilos	2.7	per kilo	8.1
	Direct materials-Y661			3	liters	1.7	per liter	5.1
	Direct labor-Sintering			0.30	hours	23	per hour	6.9
	Direct labor-Finishing			1.10	hours	21.5	per hour	23.65
	Total							43.75
	Zeta7:
	Direct materials-X442			5	kilos	2.7	per kilo	13.5
	Direct materials-Y661			5	liters	1.7	per liter	8.5
	Direct labor-Sintering			0.40	hours	23	per hour	9.2
	Direct labor-Finishing			1.20	hours	21.5	per hour	25.8
	Total							57
2	Direct material variances-Material X442
	Direct material price variance=Actual quantity purchased*(Standard rate of material-Actual rate of material)
	If the answer is positive, variance is favorable.Otherwise unfavorable.
	Actual quantity purchased=15300 kilos
	Standard rate of material=$ 2.70
	Actual rate of material=Purchase cost/Purchases in kilos=44370/15300=$ 2.9 per kilo
	Direct material price variance=15300*(2.70-2.90)=15300*-0.2=-3060=$ 3060 U
	Direct material quantity variance=Standard rate of material*(Standard quantity -Actual quantity consumed)
	If the answer is positive, variance is favorable.Otherwise unfavorable.
	Standard rate of material=$ 2.70
	Standard quantity=Actual units produced*standard quantity per unit
	Standard quantity:
		Actual units produced	*	Standard quantity per unit	=	Standard quantity
	Alpha6	1900		3		5700
	Zeta7	900		5		4500
	Total					10200
	Actual quantity consumed=9800 kilos
	Direct material quantity variance=2.70*(10200-9800)=1080=$ 1080 F
	Direct material variances-Material Y661
	Direct material price variance=Actual quantity purchased*(Standard rate of material-Actual rate of material)
	If the answer is positive, variance is favorable.Otherwise unfavorable.
	Actual quantity purchased=16300 liters
	Standard rate of material=$ 1.70
	Actual rate of material=Purchase cost/Purchases in kilos=26080/16300=$ 1.6 per liter
	Direct material price variance=16300*(1.70-1.60)=16300*0.1=1630=$ 1630 F
	Direct material quantity variance=Standard rate of material*(Standard quantity -Actual quantity consumed)
	If the answer is positive, variance is favorable.Otherwise unfavorable.
	Standard rate of material=$ 1.70
	Standard quantity=Actual units produced*standard quantity per unit
	Standard quantity:
		Actual units produced	*	Standard quantity per unit	=	Standard quantity
	Alpha6	1900		3		5700
	Zeta7	900		5		4500
	Total					10200
	Actual quantity consumed=14300 liters
	Direct material quantity variance=1.70*(10200-14300)=-6970=$ 6970 U
3	Direct labor variances-Sintering:
	Labor rate variance=Actual hours worked*(Standard rate of labor-Actual rate of labor)
	If the answer is positive, variance is favorable.Otherwise unfavorable.
	Actual hours worked=1320 hours
	Standard rate of labor=$23 per hour
	Actual rate of labor=Actual labor cost/Actual labor hours worked=32340/1320=$ 24.50 per hour
	Direct labor rate variance=1320*(23-24.50)=-1980=$ 1980 U
	Direct labor efficiency variance=Standard rate of labor*(Standard hours-Actual hours worked)
	If the answer is positive, variance is favorable.Otherwise unfavorable.
	Standard rate of labor=$23 per hour
	Standard hours=Actual units produced*Standard hour per unit
		Actual units produced	*	Standard hours per unit	=	Standard hours
	Alpha6	1900		0.3		570
	Zeta7	900		0.4		360
	Total					930
	Actual hours worked=1320 hours
	Direct labor efficiency variance=23*(930-1320)=-8970=$ 8970 U
	Direct labor variances-Finishing:
	Labor rate variance=Actual hours worked*(Standard rate of labor-Actual rate of labor)
	If the answer is positive, variance is favorable.Otherwise unfavorable.
	Actual hours worked=2980 hours
	Standard rate of labor=$21.50 per hour
	Actual rate of labor=Actual labor cost/Actual labor hours worked=70030/2980=$ 23.50 per hour
	Direct labor rate variance=2980*(21.50-23.50)=-5960=$ 5960 U
	Direct labor efficiency variance=Standard rate of labor*(Standard hours-Actual hours worked)
	If the answer is positive, variance is favorable.Otherwise unfavorable.
	Standard rate of labor=$21.50 per hour
	Standard hours=Actual units produced*Standard hour per unit
		Actual units produced	*	Standard hours per unit	=	Standard hours
	Alpha6	1900		1.1		2090
	Zeta7	900		1.2		1080
	Total					3170
	Actual hours worked=2980 hours
	Direct labor efficiency variance=21.50*(3170-2980)=4085=$ 4085 F
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