Compute the direct labor efficiency and rate variances for

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Reference no: EM13581219

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	$

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

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	$

Reference no: EM13581219

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