10 (CONTINUED) AN ALTERNATIVE APPROACH TO EACH SOLUTION WO...

Exercise 10-10 (continued) An alternative approach to each solution would be to work from known to unknown data in the columnar model for variance analysis: Standard Hours Actual Hours of Input, Allowed for Output, at the Standard Rate at the Actual Rate Actual Hours of Input, at the Standard Rate (AH × AR) (AH × SR) (SH × SR) 145 hours × $9.00 per hour* $8.40 per hour 145 hours × $9.00 per hour* 125 hours

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× = $1,218 = $1,305 = $1,125 ↑ ↑ ↑Rate Variance, $87 F* Efficiency Variance, $180 U Total Variance, $93 U*

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50 tune-ups* × 2.5 hours per tune-up* = 125 hours *Given