EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

2,800 hours ($6.50 per hour* – $6.00 per hour) = $1,400 U *$18,200 ÷ 2,800 hours = $6.50 per hour Labor efficiency variance = SR (AH – SH) $6.00 per hour (2,800 hours – 3,000 hours) = $1,200 F Problem 10-31 (continued)