Mickley Corporation produces two products, Alpha6s and Zeta7s, which pass through two operations, Sintering and Finishin

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Mickley Corporation Produces Two Products Alpha6s And Zeta7s Which Pass Through Two Operations Sintering And Finishin 1 (163.74 KiB) Viewed 42 times

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 Alpha6 Zeta7 Material X442 Y661 Raw Material X442 2.0 kilos Y661 1.5 liters 3.0 kilos 2.5 liters Information relating to materials purchased and materials used in production during May follows: Standard Price $ 4.30 per kilo $ 1.60 per liter Req 1 Purchases 14,800 kilos 15,800 liters The following additional information is available: Alpha6: Standard Labor Time Finishing Sintering Req 2 0.10 hours 0.80 hours 0.45 hours 0.90 hours Purchase Cost $ 66,600 $ 23,700 a. The company recognizes price variances when materials are purchased. b. The standard labor rate is $22.00 per hour in Sintering and $21.00 per hour in Finishing. c. During May, 1,220 direct labor-hours were worked in Sintering at a total labor cost of $28,060, and 2,930 direct labor-hours were worked in Finishing at a total labor cost of $67,390. d. Production during May was 2,300 Alpha6s and 1,600 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. Complete this question by entering your answers in the tabs below. Req 3 Standard Quantity or Hours Used in Production 9,300 kilos 13,800 liters 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 Price or Rate Standard Cost

Three grams of musk oil are required for each bottle of Mink Caress, a very popular perfume made by a small company in western Siberia. The cost of the musk oil is $1.50 per gram. Budgeted production of Mink Caress is given below by quarters for Year 2 and for the first quarter of Year 3: Units of raw materials needed per unit of finished goods Units of raw materials needed to meet production First 60,000 Total units of raw materials needed Units of raw materials to be purchased Unit cost of raw materials Cost of raw materials to purchased Second 90,000 Required: Prepare a direct materials budget for musk oil, by quarter and in total, for Year 2. Year 2 Budgeted production, in bottles. The inventory of musk oil at the end of a quarter must be equal to 20% of the following quarter's production needs. Some 36,000 grams of musk oil will be on hand to start the first quarter of Year 2. First Third 150,000 Mink Caress Direct Materials Budget - Year 2 Second Quarter Fourth 100,000 Third Year 3 First 70,000 Fourth Year

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports-the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 62 students enrolled in those two courses. Data concerning the company's cost formulas appear below: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Revenue Instructor wages classroom supplies Utilities Campus rent Insurance Administrative expenses Fixed Cost per Cost per Cost per Month Student $ 1,210 $ 4,600 $ 2,300 $ 3,900 Courses Students DaunnUIA For example, administrative expenses should be $3,900 per month plus $40 per course plus $7 per student. The company's sales should average $860 per student. The company planned to run four courses with a total of 62 students; however, it actually ran four courses with a total of only 52 students. The actual operating results for September were as follows: Course $ 2,940 $80 Actual $ 50,420 $ 11,040 $ 17,210 $ 1,940 $4,600 $ 2,440 $ 3,920 $ 40 Required: Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Actual Results $ 280 4 52 $7 50 400 Gourmand Cooking School Flexible Budget Performance Report For the Month Ended September 30 Flexible Budget Planning Budget