EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

Question

11,800 hours ($7.00 per hour – $6.00 per hour) = $11,800 U Labor efficiency variance = SR (AH – SH) $6.00 per hour (11,800 hours – 12,000 hours) = $1,200 F Problem 10-19 (continued) c. Actual Hours of Actual Hours of Standard Hours Input, at the Allowed for Output, Actual Rate Standard Rate at the Standard Rate(AH × AR) (AH × SR) (SH × SR)

Answer

11,800 hours ($7.00 per hour – $6.00 per hour) = $11,800 U Labor efficiency variance = SR (AH – SH) $6.00 per hour (11,800 hours – 12,000 hours) = $1,200 F Problem 10-19 (continued) c. Actual Hours of Actual Hours of Standard Hours Input, at the Allowed for Output, Actual Rate Standard Rate at the Standard Rate(AH × AR) (AH × SR) (SH × SR)

EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

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