EXERCISE 10-11 (30 MINUTES)

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. Number of units manufactured... 20,000 Standard labor time per unit ... × 0.3* Total standard hours of labor time allowed ... 6,000 Standard direct labor rate per hour... × $12 Total standard direct labor cost ... $72,000 *18 minutes ÷ 60 minutes per hour = 0.3 hours Actual direct labor cost ... $73,600 Standard direct labor cost ... 72,000 Total variance—unfavorable ... $ 1,600