EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

90, - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
90,000 hours × $8.00 per hour $8.00 per hour 75,000 hours* × $7.85 per hour 90,000 hours × = $706,500 = $720,000 = $600,000 ↑ ↑ ↑Rate Variance, $13,500 F Efficiency Variance, $120,000 U Total Variance, $106,500 U *30,000 units × 2.5 hours per unit = 75,000 hours Alternative Solution: Labor rate variance = AH (AR – SR)