Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.50 per hour. During October, thecompany actually uses 11,500 hours of direct labor at a $180,550 total cost to produce 6,100 units. In November, thecompany uses 15,500 hours of direct labor at a $244,125 total cost to produce 6,500 units of product.AH = Actual HoursSH = Standard HoursAR = Actual RateSR = Standard Rate(1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for eachof these two months.(2) Javon investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will thecompany investigate further?Complete this question by entering your answers in the tabs below.Required 1Required 2Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for each of the:the effect of each variance by selecting favorable, unfavorable, or no variance.)OctoberActual CostStandard CostNovemberActual CostStandard CostRequired 1Required 2> Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.50 per hour. During October, thecompany actually uses 11,500 hours of direct labor at a $180,550 total cost to produce 6,100 units. In November, thecompany uses 15,500 hours of direct labor at a $244,125 total cost to produce 6,500 units of product.AH = Actual HoursSH = Standard HoursAR = Actual RateSR = Standard Rate(1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for eachof these two months.(2) Javon investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will thecompany investigate further?Complete this question by entering your answers in the tabs below.Required 1Required 2Javon investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the companyinvestigate further?Which direct labor variances will the company investigate further?< Required 1Required 2 >

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Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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7.2
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