Javonte Co. set standards of 3 hours of direct labor per unit of product and $15 per hour for the labor rate. During October, the company uses 16,250 hours of direct labor at a $247,000 total cost to produce 5,600 units of product. In November , the company uses 22,000 hours of direct labor at a $335,500 total cost to produce 6,000 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 AH AH SH SR 16,250 S 0.00 16,250 S 15.00 16,250 S 15.00 S $ 243,750 243,750 0 AR SR X X US S October Actual Cost Standard Cost AH X AR AH SR SH X SR 16,250 X S 0.00 16.250 S 15.00 16.250 S 15.00 $ 243,750 $ 243,750 S 0 0 $ Direct labor rate variance Direct labor efficiency variance Total direct labor variance OfUnfavorable 0 Unfavorable Unfavorable November Actual Cost AH Standard Cost x X AR AH X SR SH SR 0 S 0 $ 0 $ Direct labor rate variance Direct labor efficiency variance Total direct labor variance 0 Unfavorable 0 Unfavorable Unfavorable Required Required 2 > Javonte Co. set standards of 3 hours of direct labor per unit of product and $15 per hour for the labor rate. During October, the company uses 16,250 hours of direct labor at a $247,000 total cost to produce 5.600 units of product. In November, the company uses 22,000 hours of direct labor at a $335,500 total cost to produce 6,000 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 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? Total direct materials variance Required 1 Required 2
