EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

6, - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
6,400 hours* × $8.00 per hour 6,400 hours × $7.50 per hour 7,200 hours** × $7.50 per hour = $51,200 = $48,000 = $54,000 ↑ ↑ ↑Rate Variance, $3,200 U Efficiency Variance, $6,000 F Total Variance, $2,800 F * 8,000 footballs × 0.8 hours per football = 6,400 hours ** 8,000 footballs × 0.9 hours per football = 7,200 hours Alternative Solution: Labor rate variance = AH (AR – SR)