Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Exercise 2 1 - 1 6 ( Algo ) Computing and analyzing direct labor variances LO P 3 Javon Company set standards of 2 hours

Exercise 21-16(Algo) Computing and analyzing direct labor variances LO P3
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?
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
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.)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Cost Management Accounting And Control

Authors: Don R. Hansen, Maryanne M. Mowen

5th Edition

0324233108, 978-0324233100

More Books

Students also viewed these Accounting questions

Question

Illustrate the compensation structure.

Answered: 1 week ago

Question

Describe the steps in an effective performance management system.

Answered: 1 week ago

Question

Define a performance management system.

Answered: 1 week ago