Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Javonte Co. set standards of 2 hours of direct labor per unit of product and $15.70 per hour for the labor rate. During October, the

image text in transcribedimage text in transcribedimage text in transcribed

Javonte Co. set standards of 2 hours of direct labor per unit of product and $15.70 per hour for the labor rate. During October, the company uses 12,000 hours of direct labor at a $190,800 total cost to produce 6,300 units of product. In November, the company uses 16,000 hours of direct labor at a $255,200 total cost to produce 6,700 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? 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 cost variance for each of these two months. Classify each variance as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) October Actual Cost Standard Cost November Actual Cost Standard Cost Required 1 Required 2 > Required i Required 2 Javonte 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?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Managing Business Information Preliminary Edition Volume I

Authors: Thomas L. Albright , Robert W. Ingram

1st Edition

0324061625, 978-0324061628

More Books

Students also viewed these Accounting questions

Question

Give three examples of industries that use process-costing system?

Answered: 1 week ago