Abrams, Inc. provides the following results of March's operations:
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?
(c) Assuming the variances are immaterial and we close them to Cost of Goods Sold, what will the effect be on that account of these variances?

Question

Abrams, Inc. provides the following results of March's operations: 
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?
(c) Assuming the variances are immaterial and we close them to Cost of Goods Sold, what will the effect be on that account of these variances?

Quizplus · Accepted Answer

The Answer of Abrams, Inc. provides the following results of March's operations: 
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?
(c) Assuming the variances are immaterial and we close them to Cost of Goods Sold, what will the effect be on that account of these variances?