EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

16,500 hours ($1.20 per hour* – $1.30 per hour) = $1,650 F *$19,800 ÷ 16,500 hours = $1.20 per hour Variable overhead efficiency variance = SR (AH – SH) $1.30 per hour (16,500 hours – 16,000 hours) = $650 U Problem 10-25 (continued)