7.

Javonte Co. set standards of 2 hours of direct labor per unit of product and $15.80 per hour for the labor rate. During October, the company uses 12,100 hours of direct labor at a $193,600 total cost to produce 6,400 units of product. In November, the company uses 16,100 hours of direct labor at a $258,405 total cost to produce 6,800 units of product.

AH = Actual Hours

SH = Standard Hours

AR = Actual Rate

SR = Standard Rate

(1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months. Classify each variance as favorable or unfavorable.

(2) Javonte investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further?

(2} Javonte investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further? Completethis question by' entering your'ahswer's in the tab'sbeluw. Required 1 Required 2 J'avonte investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further? Which direct labor variances will the campanyr investigate further? I \\ Compute the direct labor rate variance. the direct labor efciency variance, and the total direct labor cost variance for each of these two months. Classify each variance as- favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable,_ and no variance.)