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9.4) Please post answers with supporting calculations Using Control Limits to Determine When to Investigste a Variance Kavallia Company set a standard cost for one
9.4) Please post answers with supporting calculations
Using Control Limits to Determine When to Investigste 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: 1. Calculate the variance from standard for each month Which months should be investigated? 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 514,500, Now which months should be investigated Step by Step Solution
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