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T Co usually has a quarterly labour cost of $2,500,000. Material costs (mainly copper) were $3,000,00 in January to March. The worldwide cost of copper has increased in the second quarter by 15%.
Overheads were $45,000,000 in January to March.
Which TWO of the following variances for April to June are worth investigating as the reasons for th variance are unknown?
A. Overhead expenditure variance of $4,000,000 adverse
B. Materials price variance of $450,000 adverse
C. Sales volume variance of $3,000,000 favorable
D. Total direct labour variance of $400 adverse
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