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Using Coeitrol Limits to Determine When to Investigate a Variance Kavalila Company set a standard cost for one item at $328;000; allowable deviation is it
Using Coeitrol Limits to Determine When to Investigate a Variance Kavalila Company set a standard cost for one item at $328;000; allowable deviation is it 514,500 . Actual costs for the past six months are as follows: 1. Calculate the variance from standard for each month. Which months ahoud be investigated? lune Which months should be investigated? 2. What if the company uses a two-part rule for invesbgating variances? Tbe allowable devlation is the lessor of 4 percent of the standard amount or \$14,500. Now which monthis should be investigated
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