Javon Company set standards of 2 hours of direct labor per unit at a rate of $16.70 per hour. During October, the company actually uses 14,000 hours of direct labor at a $236,600 total cost to produce 7,300 units. In November, the company uses 18,000 hours of direct labor at a $305,100 total cost to produce 7,700 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 variance for each of these two months: (2) Javon 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. Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for each of effect of each variance by selecting favorable, unfavorable, or no variance.) Actual Cost

Q&A Education