EXERCISE 10-11 (30 MINUTES)

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
5,750 hours × $12.00 per hour 6,000 hours* × $12.00 per hour $73,600 = $69,000 = $72,000 ↑ ↑ ↑Rate Variance, $4,600 U Efficiency Variance, $3,000 F Total Variance, $1,600 U *20,000 units × 0.3 hours per unit = 6,000 hours Alternative Solution: Labor rate variance = AH (AR – SR)