$3$ Exercise $21-16($Static$)$ Computing and analyzing direct labor variances LO P$3$

Javon Company set standards of $3$ hours of direct labor per unit at a rate of $$15$ per hour. During October, the company actually uses $16,250$ hours of direct labor at a $$247,000$ total cost to produce $5,600$ units. In November, the company uses $22,000$ hours of direct labor at a $$335,500$ total cost to produce $6,000$ units of product.

$10$

$AH=$ 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 $1$ the effect of each variance by selecting favorable, unfavorable, or no variance.$)$

Required $1$