EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

12, - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD 12, - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
12,000 plates ($2.35 per plate* – $2.50 per plate) = $1,800 F *$28,200 ÷ 12,000 plates = $2.35 per plate. Materials quantity variance = SP (AQ – SQ) $2.50 per plate (10,500 plates – 8,400 plates) = $5,250 U Problem 10-16 (continued) Note that all of the price variance is due to the hospital’s 6% quantity discount. Also note that the $5,250 quantity variance for the month is equal to 25% of the standard cost allowed for plates.