Company R has produced the following variance analysis report. If Company R has a policy to investigate variances over 10% of the flexible budget, which variances should be investigated?

ActualFlexible budgetBudget VariancePrice VarianceQuantity VarianceDM$324,240$298,000$26,240U$39,000U($12,760)FDL$215,580$300,000($84,420)F($13,000)F($71,420)FVOH$231,860$249,000($17,140)F$2,000U($19,140)F

Thedirect materials quantity variance and the variable overhead efficiency variance.

The direct labor rate variance and the direct labor efficiency variance.

The direct materials price variance and the variable overheadefficiency variance.

The direct materials pricevariance and thedirect labor efficiency variance.

QUESTION 27 Company R has produced the following variance analysis report. If Company R has a policy to investigate variances over 10% of the flexible budget, which variances should be investigated? Actual Flexible Price budget Budget Quantity Variance Variance Variance DM $324,240 $298,000 $26,240 U $39,000 U ($12,760) F DL $215,580 $300,000 ($84,420) F ($13,000) F ($71,420) F VOH $231,860 $249,000 ($17,140) F $2,000 U ($19,140) F O The direct materials quantity variance and the variable overhead efficiency variance. O The direct labor rate variance and the direct labor efficiency variance. O The direct materials price variance and the variable overhead efficiency variance. O The direct materials price variance and the direct labor efficiency variance