Exercise 08-16 Computing and interpreting labor variances LO P3 Javonte Co. set standards of 2 hours of direct labor per unit of product and $17.00 per hour for the labor rate. During October, the company uses 14,500 hours of direct labor at a $249,400 total cost to produce 7,600 units of product. In November, the company uses 18,500 hours of direct labor at a $319,125 total cost to produce 8,000 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 cost variance for each of these two months. Classify each variance as favorable or unfavorable. (2) Javonte 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 cost variance for each of these two months. Classify each variance as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Required 1 Required 2 Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months. Classify each variance as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) October Actual Cost Standard Cost AH AR 14,500 X $ 0.00 $ 0 $ 0 $ 0 0 November Actual Cost Standard Cost November Actual Cost Standard Cost 0 $ 0 $ 0 $ 0