Monte Rosa Corporation produces two products, Alpha8s and Zeta9s, which pass through two operations, Sintering and Finishing. Each of the products uses two raw materials, X342 and Y561. 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 |
X342 |
Y561 |
|
Sintering |
Finishing |
| Alpha8 |
1.8 kilos |
2.5 liters |
|
0.25 hours |
0.75 hours |
| Zeta9 |
2.7 kilos |
4.5 liters |
|
0.40 hours |
0.85 hours |
|
| Information relating to materials purchased and materials used in production during May follows: |
| Material |
Purchases |
Purchase Cost |
Standard
Price |
Used in
Production |
| X342 |
11,000 kilos |
$ 39,600 |
$ 3.4 |
per kilo |
9,300 |
kilos |
| Y561 |
19,000 liters |
$ 24,700 |
$ 1.4 |
per liter |
13,000 |
liters |
|
| The following additional information is available: |
| a. |
The company recognizes price variances when materials are purchased. |
| b. |
The standard labor rate is $18 per hour in Sintering and $17 per hour in Finishing. |
| c. |
During May, 1,500 direct labor-hours were worked in Sintering at a total labor cost of $30,750, and 2,940 direct labor-hours were worked in Finishing at a total labor cost of $55,860. |
| d. |
Production during May was 1,500 Alpha8s and 2,000 Zeta9s. |
| Requied: |
| 1. |
Prepare a standard cost card for each product, showing the standard cost of direct materials and direct labor. (Round your intermediate and final answers to 2 decimal places.)
|
|
Standard Cost |
| Alpha8: |
|
| Direct materials-X342 |
$ |
| Direct materials-Y561 |
|
| Direct labor-Sintering |
|
| Direct labor-Finishing |
|
| |
|
| Total |
$ |
| |
|
| Zeta9: |
|
| Direct materials-X342 |
$ |
| Direct materials-Y561 |
|
| Direct labor-Sintering |
|
| Direct labor-Finishing |
|
| |
|
| Total |
$ |
| |
|
|
| 2. |
Compute the materials quantity and price variances for each material. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round intermediate calculations.)
|
|
Material X342 |
Material Y561 |
| Materials quantity variance |
|
|
|
|
| Materials price variance |
|
|
|
|
|
| 3. |
Compute the direct labor efficiency and rate variances for each operation. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round intermediate calculations.)
|
|
Sintering |
Finishing |
| Labor efficiency variance |
$ |
(Click to select)FNoneU |
$ |
(Click to select)UNoneF |
| Labor rate variance |
$ |
(Click to select)UNoneF |
$ |
|