EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

4. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD 4. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
4. Standard cost of material used... $16,800 Actual cost of material used ... 15,000 Total variance ... $ 1,800 F The price and quantity variances together equal the total variance. If the quantity variance is $1,200 U, then the price variance must be $3,000 F: Price variance ... $ 3,000 F Quantity variance ... 1,200 U Total variance ... $ 1,800 F Problem 10-26 (continued) Alternative Solution: Actual Quantity Standard Quantity Allowed for Output, of Input, at Standard Price Actual Price at Standard Price (AQ × AP) (AQ × SP) (SQ × SP)