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Javon Company set standards of 3 hours of direct labor per unit at a rate of $16.00 per hour. During October, the company actually uses 19,200 hours of direct labor at a $311,040 total cost to produce 6,600 units. In November, the company uses 23,200 hours of direct labor at a $377,000 total cost to produce 7,000 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?

Javon Company set standards of 3 hours of direct labor per unit at a rate of $16.00 per hour. During October, the company actually uses 19,200 hours of direct labor at a $311,040 total cost to produce 6,600 units. In November, the company uses 23,200 hours of direct labor at a $377,000 total cost to produce 7,000 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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 tw Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. AH AH Actual Cost X X Actual Cost X AR Actual Rate SR Standard Rate X AR AR 0 0 $ S 0 0 $ S AH AH 0 0 0 October X X November X X direct labor at a $377,000 total cost to produce 7,000 units of product AH Actual Hours SH Standard Hours SR Complete this question by entering your answers in the tabs below. SR $ $ 0 Required 2 > 0 SH Direct labor efficiency variance SH Standard Cost X X Standard Cost X (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? Required 1 Required 2 Javon investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further? Which direct labor variances will the company investigate further? < Required 1 SR SR
Transcribed Image Text: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 tw Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. AH AH Actual Cost X X Actual Cost X AR Actual Rate SR Standard Rate X AR AR 0 0 $ S 0 0 $ S AH AH 0 0 0 October X X November X X direct labor at a $377,000 total cost to produce 7,000 units of product AH Actual Hours SH Standard Hours SR Complete this question by entering your answers in the tabs below. SR $ $ 0 Required 2 > 0 SH Direct labor efficiency variance SH Standard Cost X X Standard Cost X (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? Required 1 Required 2 Javon investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further? Which direct labor variances will the company investigate further? < Required 1 SR SR
Javon Company set standards of 3 hours of direct labor per unit at a rate of $16.00 per hour. During October, the company actually uses 19,200 hours of direct labor at a $311,040 total cost to produce 6,600 units. In November, the company uses 23,200 hours of direct labor at a $377,000 total cost to produce 7,000 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.
Transcribed Image Text:Javon Company set standards of 3 hours of direct labor per unit at a rate of $16.00 per hour. During October, the company actually uses 19,200 hours of direct labor at a $311,040 total cost to produce 6,600 units. In November, the company uses 23,200 hours of direct labor at a $377,000 total cost to produce 7,000 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.
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