- Problem 10-38 Direct-Labor Variances at Colgate-Palmolive Company; Cost Variance Investigation ( LO 10-3, -4) The following data pertain to Colgate-Palmolive's liquid fllling line during the first 10 months of a particular year. The standard ratio of directlabor hours to machine hours is 4.1 . The standard directlabor rate is $15.08. Required: 1. Show how the following amounts were calculated for the month of January. a. Standard directlabor hours. b. Directlabor effciency variance. 2. Calculate the following amounts. a. The standard directlabor cost for each of the 10 months b. For each month, 20 percent of the standard directiabor cost. 3. Suppose management imvertigates all variances in ercess of 20 percent of mtandard cost. Which variances will be imvertigated? 4. Suppose the standard deviation for the directlabor effciency variance is $5,000. Draw a rtatisticat control chart, and plot the variance data. 5. Using the chart developed in requirement 4 , which variances will be investigated? 6. The variances for March. April, and June are much larger than the ohers, Suggest at least one reason for this