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Javonte Co. set standards of 2 hours of direct labor per unit of product and $15.50 per hour for the labor rate. During October, the
Javonte Co. set standards of 2 hours of direct labor per unit of product and $15.50 per hour for the labor rate. During October, the company uses 11,500 hours of direct laborat a $180.550 total cost to produce 6,100 units of product. In November, the company uses 15.500 hours of direct labor at a $244,125 total cost to produce 6.500 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? 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 Complete this question by entering your answers in the tabs below. Required 1 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?
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