Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Javonte Co. set standards of 3 hours of direct labor per unit of product and $16.60 per hour for the labor rate. During October, the

Javonte Co. set standards of 3 hours of direct labor per unit of product and $16.60 per hour for the labor rate. During October, the company uses 21,000 hours of direct labor at a $352,800 total cost to produce 7,200 units of product. In November, the company uses 25,000 hours of direct labor at a $421,250 total cost to produce 7,600 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? image text in transcribedimage text in transcribed

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 each variance as favorable or unfavorable. (Indicate the effect at each variance by selecting for favorable, unfavorable, and no variance October Actual Cost Standard Cost November Actual Cost Standard Cost Required 2 > 12 Next > 1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct 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 va 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 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 with AI-Powered 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

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

Students also viewed these Accounting questions