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Javon Company set standards of 2 hours of direct labor per unit at a rate of $16.50 per hour. During October, the company actually uses
Javon Company set standards of 2 hours of direct labor per unit at a rate of $16.50 per hour. During October, the company actually uses 13,800 hours of direct labor at a $230,460 total cost to produce 7,100 units. In November, the company uses 17,800 hours of direct labor at a $298,150 total cost to produce 7,500 units of product. AH=ActualHoursSH=StandardHoursAR=ActualRateSR=StandardRate (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 not complete. 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.) 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.)
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