EXERCISE 10-12 (20 MINUTES)

20, - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
20,000 pounds × $2.50 per pound $2.50 per pound 18,400 pounds* ×$2.35 per pound 20,000 pounds × = $47,000 = $50,000 = $46,000 ↑ ↑ ↑Price Variance, $3,000 F Quantity Variance, $4,000 U Total Variance, $1,000 U *4,000 units × 4.6 pounds per unit = 18,400 pounds Alternatively: Materials price variance = AQ (AP – SP)