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Resset 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 . . . . . . . . . . . . . $ 300 FDirect materials quantity variance . . . . . . . . . . . 3,000 UDirect labor rate variance . . . . . . . . . . . . . . . . . 100 UDirect labor efficiency variance . . . . . . . . . . . . . 2,200 FControllable overhead variance . . . . . . . . . . . . . 400 UFixed overhead volume variance . . . . . . . . . . . . 500 F
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