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
5,600 hours* × $12.00 per hour 5,600 hours × $12.50 per hour 5,250 hours** × $12.50 per hour = $67,200 = $70,000 = $65,625 ↑ ↑ ↑Rate Variance, $2,800 F Efficiency Variance, $4,375 U Total Variance, $1,575 U * 35 technicians × 160 hours per technician = 5,600 hours ** 3,750 units × 1.4 hours per technician = 5,250 hrs Alternatively: Labor rate variance = AH (AR – SR)