Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each ofthe products uses two raw materials-X442 and Y661. The company uses a standard cost system, with the following standards foreach product (on a per unit basis):Raw MaterialProductAlpha6Zeta7MaterialX442Y661Y661X4423.0 kilos3.0 liters5.0 kilos 5.0 litersSintering0.30 hours1.10 hours0.40 hours 1.20 hoursInformation relating to materials purchased and materials used in production during May follows:Purchases15,300 kilos16,300 litersPurchase Cost$ 44,370Standard Price$ 2.70 per kiloUsed in Production9,800 kilos14,300 liters$ 26,080$ 1.70 per literThe following additional information is available:a. The company recognizes price variances when materials are purchased.b. The standard labor rate is $23.00 per hour in Sintering and $21.50 per hour in Finishing.c. During May, 1,320 direct labor-hours were worked in Sintering at a total labor cost of $32,340, and 2,980 direct labor-hours wereworked in Finishing at a total labor cost of $70,030.d. Production during May was 1,900 Alpha6s and 900 Zeta7s.Standard Labor TimeFinishingRequired: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.Req 1Complete this question by entering your answers in the tabs below.Req 2Req 3

Name: Mickley Corporation produces two products, Alpha6s and Zeta7s, which
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Description: Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishing. Each ofthe products uses two raw materials-X442 and Y661. The company uses a standard cost system, with the following standard

Solution 1:Computation of standard cost card for each product is as under:Standard Quantity or…

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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.

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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 5PA: Medical Tape makes two products: Generic and Label. It estimates it will produce 423,694 units of...

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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 Material Standard Labor Time Sintering Product Alpha6 Zeta7 X442 3.0 kilos 3.0 liters 5.0 kilos 5.0 liters Y661 Finishing 0.30 hours 0.40 hours 1.10 hours 1.20 hours Information relating to materials purchased and materials used in production during May follows: Material X442 Y661 Purchases 15,300 kilos 16,300 liters Purchase Cost 44,370 $ 26,080 Standard Price $ 2.70 per kilo $ 1.70 per liter Used in Production 9,800 kilos 14,300 liters The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $23.00 per hour in Sintering and $21.50 per hour in Finishing. c. During May, 1,320 direct labor-hours were…
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 Material Standard Labor Time Product X442 Y661 Sintering Finishing Alpha6 2.0 kilos 1.5 liters 0.10 hours 0.80 hours Zeta7 3.0 kilos 2.5 liters 0.45 hours 0.90 hours Information relating to materials purchased and materials used in production during May follows: Material Purchases Purchase Cost StandardPrice Used inProduction X442 14,800 kilos $66,600 $4.30 per kilo 9,300 kilos Y661 15,800 liters $23,700 $1.60 per liter 13,800 liters The following additional information is available: The company recognizes price variances when materials are purchased. The standard labor rate is $22.00 per hour in Sintering and $21.00 per hour in Finishing.…
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): Product Raw Material Standard Labor Time X442 Y661 Sintering Finishing Alpha6 1.8 kilos 2.0 liters 0.20 hours 0.80 hours Zeta7 3.0 kilos 4.5 liters 0.35 hours 0.90 hours Information relating to materials purchased and materials used in production during May follows: Material Purchases Purchase Cost Standard Price Used in Production X442 14,500 kilos $ 52,200 $ 3.50 per kilo 8,500 kilos Y661 15,500 liters $ 20,925 $ 1.40 per liter 13,000 liters The following additional information is available: The company recognizes price variances when materials are purchased. The standard labor rate is $19.80 per hour in Sintering and $19.20 per hour in Finishing. During…
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): Product Raw Material X442 Alpha6 2.5 kilos 2.5 Zeta7 4.5 kilos 5.5 Y661 Standard Labor Time Sintering Finishing liters 0.40 hours 1.20 hours liters 0.40 hours 0.80 hours Information relating to materials purchased and materials used in production during May follows: Used in Production 9,900 kilos Material X442 Y661 Purchases Purchase Cost Standard Price $ 15,400 kilos 46,200 $ 16,400 liters 27,880 $ per 2.80 kilo $ per 1.80 liter 14,400 liters The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $21.00 per hour in Sintering and $20.00 per hour in Finishing. c. During May, 1,350 direct labor-hours were…
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 Material Standard Labor Time Product X442 Y661 Sintering Finishing Alpha6 3.0 kilos 2.0 liters 0.40 hours 1.00 hours Zeta7 5.0 kilos 5.0 liters 0.50 hours 1.20 hours Information relating to materials purchased and materials used in production during May follows: Purchase Standard Used in Material Purchases Cost Price Production 15,700 kilos 16,700 liters $51,810 $20,040 $3.10 per kilo $1.30 per liter 10,200 kilos 14,700 liters X442 Y661 The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $23.00 per hour in Sintering and $21.50 per hour in Finishing. c. During May, 1,450 direct labor-hours were…
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): Standard Labor Time Sintering Finishing 0.40 hours 0.80 hours 0.30 hours 0.90 hours Information relating to materials purchased and materials used in production during May follows: Material Standard Price $ 3.60 per kilo X442 Used in Production 8,600 kilos 13,100 liters Y661 $ 1.50 per liter Product Alpha6 Zeta7 Raw Material Y661 X442 1.5 kilos 3.5 kilos 4.4 liters 2.2 liters Purchases 14,100 kilos 15,100 liters Purchase Cost $ 53,580 $ 21,140 The following additional information is available: a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $18.00 per hour in Sintering and $18.00 per hour in Finishing. c. During May, 1,250 direct labor-hours were…
Pasternik Company produces and sells two products, Alpha and Zeta. The following information is available relating to its setup activities: Alpha Units produced Batch size (units) Total direct labor hours Cost per setup A) 이이이이티 B) With a volume-based costing system that applies overhead based on direct labor hours, the setup cost portion of overhead for each unit is (rounded to the nearest cent): C) D) 270 10 E) 1,100 $2,180 Alpha Zeta $3.43 $13.96 $4.43 $14.96 $9.19 22,130 540 43,120 $2,260 Zeta $3.43 $6.68 $4.43 $7.68 $5.55
Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Measures Cost Product Z1 Product Z8 Total DLHS $112,190 40,440 609,770 600 2,000 Machine setups Оrder size 2,600 1,200 6, 200 setups 500 700 MHs 3,000 3,200 $762,400 The activity rate for the Machine Setups activity cost pool under activity-based costing is closest to: Multiple Cholce $203.26 per setup $190.55 per setup $122.97 per setup 92 F AQI 61 nere to search DELL
Strama, Inc., manufactures and sells two products: Product A6 and Product 15. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity Estimated Expected Activity Activity Overhead Activity Cost Pools Labor-related Production orders Measures Cost $181,138 39,624 173,147 Product A6 Product I5 1,800 Total DLHS 7,200 400 9,000 orders 600 1,000 Order size MHS 4,600 4,700 9,300 $393,909 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Cholce $23.74 per MH $100.63 per MH $43.77 per MH 自。 92 F AQI 61 ype here to search DELL
Moistner, Inc., manufactures and sells two products: Product E6 and Product W9. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below: Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours Product E6 700 7.0 4,900 Product W9 100 5.0 500 Total direct labor-hours 5,400 The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product E6 Product W9 Total Labor-related DLHs $ 233,604 4,900 500 5,400 Machine setups setups 30,942 500 400 900 Order size MHs 712,045 4,200 4,300 8,500 $ 976,591 If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of…
Forner, Inc., manufactures and sells two products: Product Z1 and Product Z8. The company has an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product Z1 Product Z8 Total Labor-related DLHs $ 112,190 600 2,000 2,600 Machine setups setups 40,440 500 700 1,200 Order size MHs 609,770 3,000 3,200 6,200 $ 762,400 The activity rate for the Order Size activity cost pool under activity-based costing is closest to: Multiple Choice $56.10 per MH $293.23 per MH $76.24 per MH $98.35 per MH
Trimake Limited makes three main products, using broadly the same production methods and equipment for each. A conventional product costing system is used at present, although an activity-based costing (ABC) system is being considered. Details of the three products for a typical period are: Product X Product Y Product Z Hours per Labour hours 1/2 1½ 1 Costs relating to set-ups Costs relating to machinery Costs relating to materials handling Costs relating to inspection Total production overhead Product X Product Y Product Z unit Total activities for the period: 75 115 480 670 Machine hours 1½ 1 3 Direct labour costs £6 per hour and production overheads are absorbed on a machine hour basis. The rate for the period is £28 per machine hour. Further analysis shows that the total of production overheads can be divided as follows: Number of Number of set-ups (%) 35 movements of materials 12 21 87 120 Materials per unit £ 20 15 30 100% 20 12 25 The following activity volumes are associated…