Joseph, Inc Required:
(A) Determine the Total Overhead Cost Variance for June

Essay

Joseph, Inc., provides the following results of June's operations: $\begin{array}{ll} \text { Direct materials price variance} & \$ 400 \mathrm{~F} \\ \text { Direct materials quanty variance } & 2,000 \mathrm{U} \\\text {Direct Labor rate variance } & 100 \mathrm{U} \\ \text {Direct labor efficiency variance } & 1,200 \mathrm{~F} \\\text { Variable overhead spending variance } & 400 \mathrm{U} \\\text { Variable overhead efficiency variance } & 800 \mathrm{~F} \\\text { Fixed overhead spending variance } & 100 \mathrm{U} \\\text { Fixed overhead volume variance } & 600 \mathrm{~F} \end{array}$

Required:
(a) Determine the total overhead cost variance for June.
(b) Applying the management by exception approach, which of the variances shown are of greatest concern? Why?