Fiber Optic Inc. investigates all variances above 10 percent of the flexible budget. The flexible budget for
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Fiber Optic Inc. investigates all variances above 10 percent of the flexible budget. The flexible budget for direct materials is \($50,000.\) The direct materials price variance is \($4,000\) unfavorable and the direct materials quantity variance is (\($6,000)\) favorable. Which variances should be investigated according to company policy? Show calculations to support your answer.
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