EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

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 yards × $4.00 per yard* 11,200 yards** × $4.00 per yard* $45,600 = $48,000 = $44,800 ↑ ↑ ↑Price Variance, $2,400 F Quantity Variance, $3,200 U Total Variance, $800 U * $22.40 ÷ 5.6 yards = $4.00 per yard ** 2,000 sets × 5.6 yards per set = 11,200 yards Alternative Solution: Materials price variance = AQ (AP – SP)