1. The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead efficiency variance for June is:

	$240 U
	$216 U
	$240 F
	$216 F

2. The term management by exception refers to which of the following?

	Investigating all unfavorable cost variances
	Investigating all favorable cost variances
	Investigating significant cost variances
	Setting standards that are acceptable to management
	All of the above