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* × $3.50 per hour 5,250 hours** × $3.50 per hour $18,200 = $19,600 = $18,375 ↑ ↑ ↑Spending Variance, $1,400 F Efficiency Variance, $1,225 U Total Variance, $175 F * Based on direct labor hours: 35 technicians × 160 hours per technician = 5,600 hours ** 3,750 units × 1.4 hours per unit = 5,250 hours Alternatively: Variable overhead spending variance = AH (AR – SR)