Multiple Products, Materials, and Process Variances Please Help!

USA Discussion in 'Technical Queries' started by Frazzledstudent, Apr 18, 2017.

  1. Frazzledstudent

    Frazzledstudent

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    Disclaimer: Hello there, I'm a college student in this Managerial Accounting class and I cannot for the life of me figure out the 8 question marks on this problem. Any insight would be SO SO SO appreciated!!!!!

    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):

    Raw Materials Standard Labor Time
    Product X442 Y661 Sintering Finishing

    Alpha 6 2.5 kilos 2.5 liters 0.20 hours 0.90 hours
    Zeta7 4.5 kilos 3.5 liters 0.30 hours 1.20 hours

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

    Material Purchases Purchase Cost Standard Price Used in Production
    X442 15,000 kilos $39,000 2.40 per kilo 9,500 kilos
    Y661 16,000 liters $20,000 1.40 per liter 14,000 liters

    The following additional information is available:
    -The company recognizes price variances when materials are purchased.
    -The standard labor rate is $23.00 per hour in Sintering and $20.00 per hour in Finishing.
    -During May, 1,300 direct labor-hours were worked in Sintering at a total labor cost of $30,550, and 2,950 direct labor-hours were worked in Finishing at a total labor cost of $64,900.
    -Production during May was 1,600 Alpha6s and 1,300 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.)

    Standard Standard
    Quantity or Price or Standard
    hours rate cost
    Alpha6
    Direct Materials X442 2.50 kilos $ 2.40 per kilo $6.00
    Direct Materials Y661 2.50 kilos $ 1.40 per liter $3.50
    Direct Labor sintering 0.20 hours $23.00 per hour $4.60
    Direct Labor finishing 0.90 hours $20.00 per hour $18.00
    Total $32.10
    Zeta7
    Direct Materials X442 4.50 kilos $2.40 per kilo $10.80
    Direct Materials Y661 3.50 kilos $1.40 per liter $4.90
    Direct Labor sintering 0.30 hours $23.00 per hour $6.90
    Direct Labor finishing 1.20 hours $20.00 per hour $24.00
    Total $46.60

    Direct Materials Variances: Material-X442
    Materials Price Variance ?
    Materials Quantity Variance ?
    Direct Materials Variances: Material Y661
    Materials Price Variance ?
    Materials Quantity Variance ?

    Direct Labor Variances: Sintering
    Labor Rate Variance ?
    Labor Efficiency Variance ?
    Direct Labor Variances: Finishing
    Labor Rate Variance ?
    Labor Efficiency Variance ?
     
    Frazzledstudent, Apr 18, 2017
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