Javon Company set standards of 3 hours of direct labor per unit at a rate of $15.60 per hour. During October, thecompany actually uses 18,000 hours of direct labor at a $284,400 total cost to produce 6,200 units. In November, thecompany uses 22,000 hours of direct labor at a $348,700 total cost to produce 6,600 units of productAH-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 foreach of 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 Required12Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance foreach of these two months. (Indicate the effect of each variance by selecting favorable, unfavorable, or novariance.)hcesActual CostActual Cost00$$Show Transcribed TextAH Actual HoursSH-Standard HoursAR Actual RateSR Standard Rate00$Required Required1$00OctoberNovember00< Required 1$3$ 00< Required 1Standard CostRequired 2 >CJavon Company set standards of 3 hours of direct labor per unit at a rate of $15.60 per hour. During October, thecompany actually uses 18,000 hours of direct labor at a $284,400 total cost to produce 6,200 units. In November, thecompany uses 22,000 hours of direct labor at a $348,700 total cost to produce 6,600 units of product.Standard CostWhich direct labor variances will the company investigatefurther?(1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance foreach of 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.Show less AJavon investigates variances of more than 5% of actual direct labor cost. Which directlabor variances will the company investigate further?Required 2 >

Labor variance is the term used to describe situations where the actual cost of a labor activity is…

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...

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