Mickley Corporation produces two products, Alpha6s 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):

Information relating to materials purchased and materials used in production during May follows:

The following additional information is available:
a. The company recognizes price variances when materials are purchased.
b. The standard labor rate is $ 19.80 per hour in Sintering and $ 19.20 per hour in Finishing.
c. During May, 1,200 direct labor-hours were worked in Sintering at a total labor cost of $ 27,000, and 2,850 direct labor-hours were worked in Finishing at a total labor cost of $ 59,850.
d. Production during May was 1,500 Alpha6s and 2,000 Zeta7s.

Required:
1. Prepare a 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 eachoperation.

Transcribed Image Text:

Raw Material X442 Y661 Standard Labor Time X442 Sintering Finishing Product Zeta7 .. .. . . . . 3.0 kilos 4.5 liters 0.35 hours 0.90 hours Material Purchases Purchase Cost Standard Price Used in Production X442 Y661 14,500 kilos $52.200 $3.50 per kilo $1.40 per liter 8,500 kilos 13,000 liters