Exercise $23-16($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 $$17\mathrm{.}00$ per hour. During October, the company actually uses $14,500$ hours of direct labor at a $$249,400$ total cost to produce $7,600$ units. In November, the company uses $18,500$ hours of direct labor at a $$319,125$ total cost to produce $8,000$ 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.

Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.

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