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 $15.90 per hour for the labor rate. During October, the

image text in transcribed
image text in transcribed
image text in transcribed
Javonte Co set standards of 3 hours of direct labor per unit of product and $15.90 per hour for the labor rate. During October, the company uses 19,000 hours of direct labor ata $305.900 total cost to produce 6,500 units of product. In November, the company uses 23.000 hours of direct laborat a $371.450 total cost to produce 6,900 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 varlance 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 Standard Cost 3 0 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 Standard Cost 15 Uvorable Direct labor efficiency variance Total director variance November Actual Cost Standard Cost Required 2 > 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? Direct labor efficiency variance

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

Cost Accounting

Authors: M.E. Thukaram Rao

3rd Edition

8122433820, 978-8122433821

More Books

Students also viewed these Accounting questions