EXERCISE 10-4 (20 MINUTES)

1. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
1. Number of items shipped... 120,000 Standard direct labor-hours per item ... × 0.02 Total direct labor-hours allowed ... 2,400 Standard variable overhead cost per hour ... × $3.25 Total standard variable overhead cost... $ 7,800 Actual variable overhead cost incurred... $7,360 Total standard variable overhead cost (above) ... 7,800 Total variable overhead variance ... $ 440 Favorable Standard Hours