Exercise $21-16($Algo$)$ Computing and analyzing direct labor variances LO P$3$

Javon Company set standards of $2$ hours of direct labor per unit at a rate of $$15\mathrm{.}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?

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Required $1$

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.$)$