EXERCISE 10-10 (20 MINUTES)

2. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
2. Rate variance = AH (AR – SR) 145 hours (AR – $9.00 per hour) = $87 F 145 hours × AR – $1,305 = –$87* 145 hours × AR = $1,218 AR = $1,218 ÷ 145 hours AR = $8.40 per hour *When used with the formula, unfavorable variances are positive and favorable variances are negative.