Ch $10$ Homework

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$1$ efficiency variances during the first six months of the current year.

$2\mathrm{.}5$ points

$00$:$46$:$34$

$\backslash$table$[[$January$,$$$340,$F$],[$February$,890,$U$],[$March$,790,$U$],[$April$,990,$U$],[$May$,1,140,$U$],[$June$,1,720,$U$]]$

The standard direct$-$labor cost during each of these months was $$28,000.$ The controller has estimated that the firm's monthly direct$-$labor variances have a standard deviation of $$1,040.$

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EX $10-28($Algo$)$ Part $2$: Which variances will be investigated?

Required:

$2-$a$.$ Determine the cutoff value for investigation if the controller's rule of thumb is to investigate all variances equal to or greater than $6$ percent of standard cost.

$2-$b$.$ Based on the cutoff value, which month will have its direct$-$labor efficiency variance investigated?

Complete this question by entering your answers in the tabs below.

Req $2$A

Determine the cutoff value for investigation if the controller's rule of thumb is to investigate all variances equal to or greater than $6$ percent of standard cost.

Cutoff value $1028$