Award: $5\mathrm{.}00$ points

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

Javon Company set standards of $2$ hours of direct labor per unit at a rate of $$16\mathrm{.}10$ per hour. During October, the company actually uses $13,000$ hours of direct labor at a $$211,900$ total cost to produce $6,700$ units. In November, the company uses $17,000$ hours of direct labor at a $$277,950$ total cost to produce $7,100$ 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.

Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for each of these two months.

Note: Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.

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