Using Control Limits to Determine When to Investigate a Variance Kavallia Company set a standard cost for one item at $328,000; allowable deviation is $14,500. Actual costs for the past six months are as follows: June $331,500 September $314,000 July 345,000 October 331,000 August 346,600 November 324,000 Required: 1. Calculate the variance from standard for each month. Variance June Unfavorable July Unfavorable August Unfavorable September Favorable October Unfavorable November Favorable Which months should be investigated? June Not investigated Investigated July August Investigated September Not investigated October Not investigated November Not investigated 2. What if the company uses a two-part rule for investigating variances? The allowable deviation is the lesser of 4 percent of the standard amount or $14,500. Now which months should be investigated? June Not investigated July Investigated August Investigated September Investigated October Not investigated November Not investigated