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Question
Abrams, Inc., provides the following results of March's operations:
| Direct materials price variance .. | $ 400F |
| Direct materials quantity variance . | 2,000U |
| Direct labor rate variance .. | 100U |
| Direct labor efficiency variance .... | 1,200F |
| Variable overhead spending variance | 400U |
| Variable overhead efficiency variance .. | 800F |
| Fixed overhead spending variance . | 100U |
| Fixed overhead volume variance ... | 600F |
Required:
(a) Determine the total overhead cost variance for March.
(b) Applying the management by exception approach, which of the variances shown are of greatest concern? Why?
Answer
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Related questions
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