EXERCISE 10-15 (CONTINUED) ALTERNATIVE SOLUTION

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
5,000 hours ($8.60 per hour* – $8.00 per hour) = $3,000 U *$43,000 ÷ 5,000 hours = $8.60 per hour Labor efficiency variance = SR (AH – SH) $8.00 per hour (5,000 hours – 4,800 hours) = $1,600 U b. The journal entry would be: Work in Process (4,800 hours × $8.00 per hour) ... 38,400 Labor Rate Variance (5,000 hours × $0.60 per hour U) ... 3,000 Labor Efficiency Variance (200 hours U × $8.00 per hour)... 1,600 Wages Payable (5,000 hours × $8.60 per hour)... 43,000