Sholar Company set a standard cost for one item at $230,000; allowable deviation is

+$8,000. Actual costs for the past six months are as follows:

Required:
1. Calculate the variance from standard for each month. Which months should be investigated?
2. What 7f the company uses a two-part rule for investigating variances? The allowable deviation is the lesser of 3 percent of the standard amount or $8,000. Now which months should be investigated?LO1

Transcribed Image Text:

June July $237,000 September $221,500 238,900 October 225,500 August 245,000 November 230,150