Direct materials

DATE	ACCOUNT TITLE	DEBIT	CREDIT
June 30	Work in progress	130,000
	Direct materials quantity variance		5,000
	Direct materials price variance		1,500
	Raw materials inventory		123,500

Direct labor

DATE	ACCOUNT TITLE	DEBIT	CREDIT
June 30	Work in progress	67,500
	Direct Labor efficiency variance		3,000
	Direct labor rate variance	500
	Wages Payable		65,000

Actual overhead

DATE	ACCOUNT TITLE	DEBIT	CREDIT
June 30	Work in progress	230,000
	Overhead volume variable	12,000
	Controllable overhead variance	8,000
	Factory overhead		250,000

1. Identify the variances that would attract the attention of a manager who uses management by exception. Describe what action(s) the manager should consider.