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 $331,500 September $314,000 July 345,000 October 332,000 August 346,400 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 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