Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materialsâX442 and Y661. The company uses a standard cost system, with the following standards for each product (on a per unit basis):
Raw Material Standard Labor Time
Product X442 Y661 Sintering Finishing
Alpha6 2.0 kilos 3.0 liters 0.20 hours 0.90 hours
Zeta7 5.0 kilos 4.0 liters 0.40 hours 1.00 hours
Information relating to materials purchased and materials used in production during May follows:
Material Purchases Purchase Cost Standard Price Used in Production
X442 15,500 kilos $48,050 $2.90 per kilo 10,000 kilos
Y661 16,500 liters $29,700 $1.90 per liter 14,500 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 $20.50 per hour in Finishing.
c. During May, 1,320 direct labor-hours were worked in Sintering at a total labor cost of $31,680, and 3,000 direct labor-hours were worked in Finishing at a total labor cost of $67,500.
d. Production during May was 2,100 Alpha6s and 1,220 Zeta7s.
Requied:
1. 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.
2. Compute the materials price and quantity variances for each material. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i. e., zero variance). Round your answers to 2 decimal places.)
3. Compute the labor rate and efficiency variances for each operation. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i. e., zero variance). Round your answers to 2 decimal places.)