Exercise $23-16$ Computing and interpreting labor variances LO P$3$

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