Javon Company set standards of $2$ hours of direct labor per unit at a rate of $$16\mathrm{.}90$ per hour. During October, the company actually

uses $14,600$ hours of direct labor at a $$249,660$ total cost to produce $7,500$ units. In November, the company uses $18,600$ hours of

direct labor at a $$318,990$ total cost to produce $7,900$ units of product.

AH $=$ Actual Hours

$SH=$ Standard Hours

AR $=$ Actual Rate

$SR=$ Standard Rate

$(1)$ Compute the direct labor rate varlance, the direct labor efficiency varlance, and the total direct labor varlance for each of these two

months.

$(2)$ Javon Investigates varlances 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.

Required $1$

Required $2$

Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for each of these two months. Javon Company set standards of $2$ hours of direct labor per unit at a rate of $$16\mathrm{.}90$ per hour. During October, the company actually

uses $14,600$ hours of direct labor at a $$249,660$ total cost to produce $7,500$ units. In November, the company uses $18,600$ hours of

direct labor at a $$318,990$ total cost to produce $7,900$ units of product.

AH $=$ Actual Hours

$SH=$ Standard Hours

AR $=$ Actual Rate

SR $=$ Standard Rate

$(1)$ Compute the direct labor rate varlance, the direct labor efficiency varlance, and the total direct labor varlance for each of these two

months.

$(2)$ Javon Investigates varlances of more than $5\%$ of actual direct labor cost. Which direct labor varlances will the company Investigate

further?

Complete this question by entering your answers in the tabs below.

Required $2$

Javon investigates variances of more than $5\%$ of actual direct labor cost. Which direct labor variances will the company

investigate further?

Which direct labor variances will the company investigate further?

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

November