# 00 Mickley Corporation produces two products, Alphabs and Zeta7s, which pass through two operations, Sintering and...

###### Question:

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 to materials purchased and materials used in production during May follows: Print Material X442 Y661 Purchase Purchases Cost 15,100 kilos $40,770 16,100 liters$22,540 Standard Price $2.50 per kilo$1.50 per liter Used in Production 9,600 kilos 14,100 liters References 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.

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