Which variances will the company investigate

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Resset Co. provides the following results of April's operations: F indicates favorable and U indicates unfavorable. In applying management by exception, the company investigates all variances of $17,800 or more.

Direct materials price variance$28,200F                Direct labor efficiency variance$17,600F

Direct materials quantity variance 12,300U               Controllable overhead variance 17,800U

Direct labor rate variance 35,200U                           Fixed overhead volume variance 18,000F

Question 1: Which variances will the company investigate?

  • Direct materials price variance checked
  • Controllable overhead variance checked
  • Direct labor rate variance unchecked
  • Direct materials quantity variance unchecked
  • Direct labor efficiency variance unchecked
  • Fixed overhead volume variance

Reference no: EM132556584

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