Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

9 3 points 03:02:45 Skipped Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.10 per hour.

image text in transcribedimage text in transcribed

9 3 points 03:02:45 Skipped 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. 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 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 Hint Complete this question by entering your answers in the tabs below. Required 1 Required 2 Print References 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.) October Actual Cost Actual Cost 0 0 $ 0 $ $ 0 0 $ 0 0 November $ 0 $ 0 < Required 1 Required 2 > Standard Cost Standard Cost 9 3 points 03:02:41 Skipped 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. 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 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 Hint Complete this question by entering your answers in the tabs below. 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? < Required 1 Required 2 >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Below is a detailed solution for calculating the direct labor rate variance direct labor efficiency variance and total direct labor variance along with the variances the company will investigate furth... blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions