Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

9 Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.10 per hour. During October, the company actually

image text in transcribedimage text in transcribed

9 Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.10 per hour. During October, the company actually uses 11,000 hours of direct labor at a $168,300 total cost to produce 5,700 units. In November, the company uses 15,000 hours of direct labor at a $230,250 total cost to produce 6,100 units of product. 3 points AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate % 04:35:34 Skipped (1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for each of these two months. (2) Javon investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further? eBook Complete this question by entering your answers in the tabs below. Hint Required 1 Required 2 Print Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for each of these two months. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) References October Actual Cost Standard Cost 0 $ 0 $ $ 0 0 November Actual Cost Standard Cost 0 $ 0 $ $ 0 0 Required 1 Required 2 > 9 Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.10 per hour. During October, the company actually uses 11,000 hours of direct labor at a $168,300 total cost to produce 5,700 units. In November, the company uses 15,000 hours of direct labor at a $230,250 total cost to produce 6,100 units of product. 3 points AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate X 04:35:28 Skipped (1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for each of these two months. (2) Javon investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further? eBook Complete this question by entering your answers in the tabs below. Hint Required 1 Required 2 Print Javon investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further? References Which direct labor variances will the company investigate further?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Solution To solve this problem well follow these steps Step 1 Calculate the Direct Labor Rate Variance for both months Step 2 Calculate the Direct Labor Efficiency Variance for both months Step 3 Calc... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Connect For Computer Accounting With Quickbooks Online

Authors: Donna Kay

2nd Edition

1264152272, 9781264152278

More Books

Students also viewed these Accounting questions

Question

Why do some people resist change?

Answered: 1 week ago