Week 10 Review Problems Saved Problem 10-44 Investigating Cost Variances (LO 10-4) Schiffer 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. points SCHIFFER CORPORATION Direct-Labor Variance Report Direct-Labor Rate Variance Direct-Labor Efficiency Variance eBook Standard Cost, % . 16% 0.98% 0.02% 0.40% 0.76% 0.78% 0.84% 1.02% 0.96% 1.14% 0.84% 0.86% Standard Cost, Amount Amount References January February March April Ma June July August September october November December 800 F 4,900 F 100 U 2,000 U 3,800 F 3,900 F 4,200 F 5,100 F 4, 800 F 5,700 F 4,200 F 4,300 F $ 5,000 U 7,500 U 9,700 U 12,800 U 20,100 U 17,000 U 28,500 U 38,000 U 37,000U 42,000 U 60,000 U 52,000 U 1.00% 1 . 509 1.948 2. 56% 4.02% 340% 5. 70% 7. 60% 7.40% 8.40% 12. 00% 10.40% Schiffer's controller uses the following rule of thumb: Investigate all variances equal to or greater than $30,000, 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? 3. Which of the following is the best reason to also follow up on favorable variances? Complete this question by entering your answers in the tabs below Required Required Required Which variances would have been investigated during the year? (Indicate month and type of variance.) (Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "0" for no effect (i.e., zero variance).) Round "Percentage of Standard Cost" to 2 decimal places.) ariance Month Percentage o Standard Cost Amount Prev 7of8 Next>