Javon Company set standards of $3$ hours of direct labor per unit at a rate of $$16\mathrm{.}80$ per hour. During October, the company actually uses $21,500$ hours of direct labor at a $$365,500$ total cost to produce $7,400$ units. In November, the company uses $25,500$ hours of

$11$

direct labor at a $$434,775$ total cost to produce $7,800$ 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 month.

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