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Unformatted text preview: variances. Given the demands on your time, you dont want to investigate variances that have an obvious explanation or that are less than 1/2 percent of actual production cost. Which variance(s) would you investigate? Variance Material price variance Do not investigate Material quantity variance Investigate Labor rate variance Do not investigate Labor efficiency variance Do not investigate Controllable overhead variance Do not investigate Overhead volume variance Do not investigate Click here if you would like to Show Work for this question E1113 Actual production cost equals standard cost plus the unfavorable variance ($3,450 x 400) + $118,200 = $1,498,200. Variance Amount Material price variance $2,200 U Material quantity variance 11,500 U Labor rate variance (2,300) F Labor efficiency variance 4,800 U Controllable overhead variance 2,000 U Overhead volume variance 100,000 U...
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 Spring '11
 Brown/Lexner

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