There are only two questions. Please show how the calculations are done.

McKeag Corporation manufactures agricultural machinery. At a recent staff meeting, the following direct labor variance report for the year just ended was presented by the controller. McKeag's controller uses the following rule of thumb: Investigate all variances equal to or greater than $60,000, which is 6 percent of standard cost. Required: 1. Which variances would have been investigated during the year? (Indicate month and type of variance.) 2. What characteristics of the variance pattern shown in the report should draw the controller's attention, regardless of the usual investigation rule? Explain. Given these considerations, which variances would you have investigated? Why