Joseph, Inc., provides the following results of June's operations: $\begin{array}{ll}
\text { Direct materials price variance} & \$ 400 \mathrm{~F} \
\text { Direct materials quanty variance } & 2,000 \mathrm{U} \
\text {Direct Labor rate variance } & 100 \mathrm{U} \
\text {Direct labor efficiency variance } & 1,200 \mathrm{~F} \
\text { Variable overhead spending variance } & 400 \mathrm{U} \
\text { Variable overhead efficiency variance } & 800 \mathrm{~F} \
\text { Fixed overhead spending variance } & 100 \mathrm{U} \
\text { Fixed overhead volume variance } & 600 \mathrm{~F}
\end{array}$

Required:
(a) Determine the total overhead cost variance for June.
(b) Applying the management by exception approach, which of the variances shown are of greatest concern? Why?

Question

Joseph, Inc., provides the following results of June's operations: $\begin{array}{ll}
 \text { Direct materials price  variance} & \$ 400 \mathrm{~F} \
 \text { Direct materials quanty variance } & 2,000 \mathrm{U} \
\text {Direct  Labor rate  variance } & 100 \mathrm{U} \
 \text {Direct labor efficiency variance } & 1,200 \mathrm{~F} \
\text { Variable overhead spending variance } & 400 \mathrm{U} \
\text { Variable overhead efficiency variance  } & 800 \mathrm{~F} \
\text { Fixed overhead spending variance } & 100 \mathrm{U} \
\text { Fixed overhead volume variance  } & 600 \mathrm{~F} 
\end{array}$

Required:
(a) Determine the total overhead cost variance for June.
(b) Applying the management by exception approach, which of the variances shown are of greatest concern? Why?

Quizplus · Accepted Answer

The Answer of Joseph, Inc., provides the following results of June's operations: $\begin{array}{ll}
 \text { Direct materials price  variance} & \$ 400 \mathrm{~F} \
 \text { Direct materials quanty variance } & 2,000 \mathrm{U} \
\text {Direct  Labor rate  variance } & 100 \mathrm{U} \
 \text {Direct labor efficiency variance } & 1,200 \mathrm{~F} \
\text { Variable overhead spending variance } & 400 \mathrm{U} \
\text { Variable overhead efficiency variance  } & 800 \mathrm{~F} \
\text { Fixed overhead spending variance } & 100 \mathrm{U} \
\text { Fixed overhead volume variance  } & 600 \mathrm{~F} 
\end{array}$

Required:
(a) Determine the total overhead cost variance for June.
(b) Applying the management by exception approach, which of the variances shown are of greatest concern? Why?

Joseph, Inc Required: (A) Determine the Total Overhead Cost Variance for June

Joseph, Inc Required:
(A) Determine the Total Overhead Cost Variance for June