EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

3. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD 3. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH10 STANDARD COST AND THE BALANCE SCORECARD
3. The two most significant variances are the materials quantity variance and the labor rate variance. Possible causes of the variances include: Materials quantity variance: Outdated standards, unskilled workers, poorly adjusted machines, careless-ness, poorly trained workers, inferior quality materials. Labor rate variance: Outdated standards, change in pay scale, overtime pay. Problem 10-20 (60 minutes)