avon Company set standards of 3 hours of direct labor per unit at a rate of $15.60 per hour. During October, the company actually uses 18,000 hours of direct labor at a $284,400 total cost to produce 6,200 units. In November, the company uses 22,000 hours of direct labor at a $348,700 total cost to produce 6.600 units of product H-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) Jevon 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.
avon Company set standards of 3 hours of direct labor per unit at a rate of $15.60 per hour. During October, the company actually uses 18,000 hours of direct labor at a $284,400 total cost to produce 6,200 units. In November, the company uses 22,000 hours of direct labor at a $348,700 total cost to produce 6.600 units of product H-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) Jevon 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.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 10E: Ada Clothes Company produced 40,000 units during April. The Cutting Department used 12,800 direct...
Related questions
Question
![Javon Company set standards of 3 hours of direct labor per unit at a rate of $15.60 per hour. During October, the
company actually uses 18,000 hours of direct labor at a $284,400 total cost to produce 6,200 units. 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 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.
Required Required
1
2
Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for
each of these two months. (Indicate the effect of each variance by selecting favorable, unfavorable, or no
variance.)
hces
Actual Cost
Actual Cost
0
0
$
$
Show Transcribed Text
AH Actual Hours
SH-Standard Hours
AR Actual Rate
SR Standard Rate
0
0
$
Required Required
1
$
0
0
October
November
0
0
< Required 1
$
3
$ 0
0
< Required 1
Standard Cost
Required 2 >
C
Javon Company set standards of 3 hours of direct labor per unit at a rate of $15.60 per hour. During October, the
company actually uses 18,000 hours of direct labor at a $284,400 total cost to produce 6,200 units. In November, the
company uses 22,000 hours of direct labor at a $348,700 total cost to produce 6,600 units of product.
Standard Cost
Which direct labor variances will the company investigate
further?
(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.
Show less A
Javon investigates variances of more than 5% of actual direct labor cost. Which direct
labor variances will the company investigate further?
Required 2 >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc47f04bf-22a9-4274-aa74-6185f2bc371a%2F5acf8ab7-3cab-4206-ba59-76faeeb4eea1%2F0idn96u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Javon Company set standards of 3 hours of direct labor per unit at a rate of $15.60 per hour. During October, the
company actually uses 18,000 hours of direct labor at a $284,400 total cost to produce 6,200 units. 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 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.
Required Required
1
2
Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for
each of these two months. (Indicate the effect of each variance by selecting favorable, unfavorable, or no
variance.)
hces
Actual Cost
Actual Cost
0
0
$
$
Show Transcribed Text
AH Actual Hours
SH-Standard Hours
AR Actual Rate
SR Standard Rate
0
0
$
Required Required
1
$
0
0
October
November
0
0
< Required 1
$
3
$ 0
0
< Required 1
Standard Cost
Required 2 >
C
Javon Company set standards of 3 hours of direct labor per unit at a rate of $15.60 per hour. During October, the
company actually uses 18,000 hours of direct labor at a $284,400 total cost to produce 6,200 units. In November, the
company uses 22,000 hours of direct labor at a $348,700 total cost to produce 6,600 units of product.
Standard Cost
Which direct labor variances will the company investigate
further?
(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.
Show less A
Javon investigates variances of more than 5% of actual direct labor cost. Which direct
labor variances will the company investigate further?
Required 2 >
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
![Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337912020/9781337912020_smallCoverImage.jpg)
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
![Cornerstones of Cost Management (Cornerstones Ser…](https://www.bartleby.com/isbn_cover_images/9781305970663/9781305970663_smallCoverImage.gif)
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
![Principles of Cost Accounting](https://www.bartleby.com/isbn_cover_images/9781305087408/9781305087408_smallCoverImage.gif)
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
![Managerial Accounting: The Cornerstone of Busines…](https://www.bartleby.com/isbn_cover_images/9781337115773/9781337115773_smallCoverImage.gif)
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
![Financial And Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781337902663/9781337902663_smallCoverImage.jpg)
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,