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 |