Javonte Co. set standards of 3 hours of direct labor per unit of product and $15.60 per hour for the labor rate. During October, the company uses 18,000 hours of direct labor at a $284,400 total cost to produce 6,200 units of product. In November, the company uses 22,000 hours of direct labor at a $348,700 total cost to produce 6,600 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?

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 AR. SR SH SR X X $15,80 15.60 $15.60 18,000 18,000 280,800 284,400 3,600 $ 0 Direct labor rate variance 3,600 Unfavorable Direct labor efficiency variance Total direct labor variance 0 November Actual Cost Standard Cost AR. SR SH SR X X 15.85 22,000 22,000 X X X 348,700 $ $ 0 0 Direct labor rate variance $ Direct labor efficiency variance Total direct labor variance