EXERCISE 10-9 (CONTINUED) B. DIRECT LABOR VARIANCES

4, - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
4,000 hours × $8.00 per hour 3,900 hours* × $8.00 per hour $36,000 = $32,000 = $31,200 ↑ ↑ ↑Rate Variance, $4,000 U Efficiency Variance, $800 U Total Variance, $4,800 U *3,000 toys × 1.3 hours per toy = 3,900 hours Alternatively: Labor rate variance = AH (AR – SR)