eBook E Calculator Using Control Limits to Determine when to Investigate a Variance Kavallia Company set a standard cost for one item at $328,000; allowable deviation is $14,500. Actual costs for the past six months are as follows: June $330,500 September $314,000 July 343,000 October 332,000 August 346,800 November 323,000 Required: 1. Calculate the variance from standard for each month. Variance June July August September October November Which months should be investigated? June Which months should be investigated? June July August September October November 2. What if the company uses a two-part rule for investigating variances? The allowable deviation is the lesser of 4 percent of the standard amount or $14,500. Now which months should be investigated? June July August September October November