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{.}50$ per hour. During October, the company actually

uses $11,500$ hours of direct labor at a $$180,550$ total cost to produce $6,100$ units. In November, the company uses $15,500$ hours of

direct labor at a $$244,125$ total cost to produce $6,500$ 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?

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.$)$