EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

5, - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD 5, - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
5,600 hours ($3.25 per hour* – $3.50 per hour) = $1,400 F *$18,200 ÷ 5,600 hours = $3.25 per hour Variable overhead efficiency variance = SR (AH – SH) $3.50 per hour (5,600 hours – 5,250 hours) = $1,225 U Both the labor efficiency variance and the variable overhead efficiency variance are computed by comparing actual labor-hours to standard la-bor-hours. Thus, if the labor efficiency variance is unfavorable, then the variable overhead efficiency variance will be unfavorable as well. Problem 10-18 (60 minutes)