Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.50 per hour. During October, the company actually uses 11,500 hours of direct labor at a $180,550 total cost to produce 6,100 units. In November, the company uses 15,500 hours of direct labor at a $244,125 total cost to produce 6,500 units of product. AH Actual Hours Standard Hours SH 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.

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Exercise 21-16 (Algo) Computing and analyzing direct labor variances LO P3
Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.50 per hour. During October, the company actually
uses 11,500 hours of direct labor at a $180,550 total cost to produce 6,100 units. In November, the company uses 15,500 hours of
direct labor at a $244,125 total cost to produce 6,500 units of product.
AH Actual Hours
SH
AR
SR
Standard Hours
Actual Rate
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 1 Required 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.)
Actual Cost
Actual Cost
0
0
$
0
0
$
0
0
$
0
0
October
November
$
0
0
<Required 1
Required 2 >
Standard Cost
Standard Cost
Transcribed Image Text:Exercise 21-16 (Algo) Computing and analyzing direct labor variances LO P3 Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.50 per hour. During October, the company actually uses 11,500 hours of direct labor at a $180,550 total cost to produce 6,100 units. In November, the company uses 15,500 hours of direct labor at a $244,125 total cost to produce 6,500 units of product. AH Actual Hours SH AR SR Standard Hours Actual Rate 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 1 Required 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.) Actual Cost Actual Cost 0 0 $ 0 0 $ 0 0 $ 0 0 October November $ 0 0 <Required 1 Required 2 > Standard Cost Standard Cost
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