EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

5, - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
5,900 hours × $3.00 per hour 6,000 hours* × $3.00 per hour $18,290 = $17,700 = $18,000 ↑ ↑ ↑Spending Variance, $590 U Efficiency Variance, $300 F Total Variance, $290 U *15,000 pools × 0.4 hours per pool = 6,000 hours Alternative Solution: Variable overhead spending variance = AH (AR – SR)