C Final HW Chp 1 1. CEXO DE ALGO 2. CEXO O ALDO 3. CEXOS DE ALDO CEXT DALGO Using Control Limits to Determine when to Investigate a Variance Kavalia 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: 534000 CEX 100 ALDO 30.000 Required: 1. Calculate the variance from standard for each month. Variance Oct Which months should be investigated? October 2. What if the company uses a two-part rule for investigating variances? The allowable deviation is the tesser of 4 percent of the standard amount or $14,500. Now which months should be investigated? 4 A PY