EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

1. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
1. a. Before the variances can be computed, we must first compute the standard and actual quantities of material per hockey stick. The com-putations are: Direct materials added to work in process (a) ... $115,200 Standard direct materials cost per foot (b)... $3.00 Standard quantity of direct materials (a) ÷ (b).. 38,400 feet Standard quantity of direct materials (a)... 38,400 feet Number of sticks produced (b)... 8,000 Standard quantity per stick (a) ÷ (b)... 4.8 feet Actual quantity of direct materials used per stick last year: