Question: Dee-Daw Co. provides the following results of April's operations: F indicates favorable and U indicates unfavorable. Applying the management by exception approach, which of the variances are of greatest concern? Why?
Direct materials price variance . . . . . . . . . . . . . $ 400 F
Direct materials quantity variance . . . . . . . . . . . 2,000 U
Direct labor rate variance . . . . . . . . . . . . . . . . . 100 U
Direct labor efficiency variance . . . . . . . . . . . . . 1,200 F
Controllable overhead variance . . . . . . . . . . . . . 400 U
Fixed overhead volume variance . . . . . . . . . . . . 600 F