EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

11, - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
11,800 hours × $7.00 per hour 11,800 hours × $6.00 per hour 12,000 hours* × $6.00 per hour = $82,600 = $70,800 = $72,000 ↑ ↑ ↑Rate Variance, $11,800 U Efficiency Variance, $1,200 F Total Variance, $10,600 U *15,000 pools × 0.8 hours per pool = 12,000 hours Alternative Solution: Labor rate variance = AH (AR – SR)