Refer to the variances in Part A, Schedule 2 that you have calculated. Select ONLY ONE (1) variance to follow up, i.e. the one that you think needs the most urgent attention ? Explain why you would choose that particular variance to follow up in the light of the facts provided by the case. Furthermore, in the light of the facts provided by the case, what would be the most likely reason that this particular variance has occurred (root cause)?

SUMMARY OF VARIANCES FOR STANDARD COSTING FIU LRV LEV MPV MEV TOTALS $ 16,600.00U VARIABLE SPENDING $ (10,500.00) F VARIABLE EFFICIENCY $ (4,050.00) F FIXED SPENDING $ (15,750.00) F FIXED VOLUME F/U $ (8,300.00)F $(3,000.00)F 32,168U $ 30,000.00 F $ (13,700.00 $(9,132.24) SET UP ALL FORMULAS BELOW AND LINK TO SUMMARY ABOVE The first calculation has been entered as an example of linking formulas. You can follow the way the calculations have been set out in tutorials, or change it to suit your own approach DIRECTLABOUR ACT QTY xSTD PRICE Ogan ACT QTY XACT PRICE STD QTY XSTD PRICE $ 8,300.00 x $ 37.00 $8,300.00x 35.00 $8,000.00 X $ 35.00 S 307,100.00 LRV $ 290,500.00 LEV $ 280,000.00 $ 16,600.00 -$ 10,500.00 DIRECT MATERIAL ACT QTY X ACT PRICE ACT QTY XSTD PRICE STD QTY XSTD PRICE $ 13,500.00 10.80 $ 13,500.00 10.50 $12,000.00 x$ 10.50 $ 145,800.00 MPV $141,750.00 MEV $ 126,000.00 $ 4,050.00 $ 15,750.00 VARIABLE OVERHEAD Actual Volume Applied $8,300.00 x $ 11.00 $8,300.00 x $ 10.00 $8,000.00 x $ 10.00 $91,300.00 Spending $83,000.00 Efficiency $ 80,000.00 8,300.00 $ 3,000.00 FIXED OVERHEAD Actual xACT PRICE Budgeted Applied $8,000.00 x $ 15.00 $117,832.24Spending $32,168 $ 150,000.00Volume $ 120,000.00 -$ 30,000.00