EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

6, - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
6,400 hours × $2.75 per hour 6,400 hours × $2.50 per hour 7,200 hours × $2.50 per hour = $17,600 = $16,000 = $18,000 ↑ ↑ ↑Spending Variance, $1,600 U Efficiency Variance, $2,000 F Total Variance, $400 F Alternative Solution: Variable overhead spending variance = AH (AR – SR)