EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

510, - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
510,000 feet × $3.20 per foot 510,000 feet × $3.00 per foot 540,000 feet* × $3.00 per foot = $1,632,000 = $1,530,000 = $1,620,000 ↑ ↑ ↑Price Variance, $102,000 U Quantity Variance, $90,000 F Total Variance, $12,000 U *30,000 units × 18 feet per unit = 540,000 feet Alternative Solution: Materials price variance = AQ (AP – SP)