1. Dolan Company's accounting records reflect the following inventories:

Dec. 31, 2020

Dec. 31, 2019

Raw materials inventory	$310,000	$260,000
Work in process inventory	300,000	160,000
Finished goods inventory	190,000	150,000

During 2020, $800,000 of raw materials were purchased, direct labor costs amounted to $670,000, and manufacturing overhead incurred was $640,000. Dolan Company's total manufacturing costs incurred in 2020 amounted to

2. Management by exception

	A.	means that only unfavorable differences will be investigated.
	B.	means that material differences will be investigated.
	C.	means that all differences will be investigated.
	D.	causes managers to be buried under voluminous paperwork.