Question
Javonte Co. set standards of 2 hours of direct labor per unit of product and $16.50 per hour for the labor rate. During October, the
Javonte Co. set standards of 2 hours of direct labor per unit of product and $16.50 per hour for the labor rate. During October, the company uses 13,800 hours of direct labor at a $230,460 total cost to produce 7,100 units of product. 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 = 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 cost variance for each of these two months. Classify each variance as favorable or unfavorable. (2) Javonte investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further?
work i Saved each variance as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no v October Actual Cost Standard Cost AH AR AH X SR SH X SR 13,800 X $ 16.70 13,800 X $ 16.50 X $ 230,460 $ 16.50 $ 227,700 $ 2,760 $ 0 $ 2,760 0 November Actual Cost Standard Cost 3.JP9 IMG_2962.jpg IMG_2961.jpg IMG_2960.jpg At F3 F5 + F6 F8 F9 $ F10 F11 % O:+ F12 P 3 & 4 * 6 7 8 9 E 0 R T Y U o P G H K K APA Sample Paper /... mework Saved November Actual Cost Standard Cost 0 0 $ 0 $ 0 0 Required 2 063.JP9 IMG_2962.jpg IMG_2961.jpg IMG_2960.jpg F5 F7 DP F8 # F9 $ F10 % - + F11 F12 3 & 4 * 5 6 CO 7 8 9 E R O T Y U G G H . K Required 1 Required 2 Savonte 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? .JP9 IMG_2962.jpg IMG_2961.jpg IMG_2960.jpg F7 F10 $ F11 % F12 3 & * 4 5 ( 6 7 8 E 0 R Y U D F G H J K work i Saved each variance as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no v October Actual Cost Standard Cost AH AR AH X SR SH X SR 13,800 X $ 16.70 13,800 X $ 16.50 X $ 230,460 $ 16.50 $ 227,700 $ 2,760 $ 0 $ 2,760 0 November Actual Cost Standard Cost 3.JP9 IMG_2962.jpg IMG_2961.jpg IMG_2960.jpg At F3 F5 + F6 F8 F9 $ F10 F11 % O:+ F12 P 3 & 4 * 6 7 8 9 E 0 R T Y U o P G H K K APA Sample Paper /... mework Saved November Actual Cost Standard Cost 0 0 $ 0 $ 0 0 Required 2 063.JP9 IMG_2962.jpg IMG_2961.jpg IMG_2960.jpg F5 F7 DP F8 # F9 $ F10 % - + F11 F12 3 & 4 * 5 6 CO 7 8 9 E R O T Y U G G H . K Required 1 Required 2 Savonte 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? .JP9 IMG_2962.jpg IMG_2961.jpg IMG_2960.jpg F7 F10 $ F11 % F12 3 & * 4 5 ( 6 7 8 E 0 R Y U D F G H J KStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started