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Which of the variances are of greatest concern

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Question: Dee-Daw Co. provides the following results of April's operations: F indicates favorable and U indicates unfavorable. Applying the management by exception approach, which of the variances are of greatest concern? Why?

Direct materials price variance . . . . . . . . . . . . . $ 400 F

Direct materials quantity variance . . . . . . . . . . . 2,000 U

Direct labor rate variance . . . . . . . . . . . . . . . . . 100 U

Direct labor efficiency variance . . . . . . . . . . . . . 1,200 F

Controllable overhead variance . . . . . . . . . . . . . 400 U

Fixed overhead volume variance . . . . . . . . . . . . 600 F

Reference no: EM131539724

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