EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

16, - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD 16, - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
16,500 hours ($4.80 per hour* – $5.00 per hour) = $3,300 F *79,200 ÷ 16,500 hours = $4.80 per hour Labor efficiency variance = SR (AH – SH) $5.00 per hour (16,500 hours – 16,000 hours) = $2,500 U b. Work in Process (16,000 hours × $5.00 per hour) ... 80,000 Labor Efficiency Variance (500 hours U × $5.00 per hour)... 2,500 Labor Rate Variance (16,500 hours × $0.20 per hour F) ... 3,300Wages Payable (16,500 hours × $4.80 per hour) ... 79,200Problem 10-25 (continued)