Question: Exercise 2116 (Algo) Computing and analyzing direct labor variances LO P3 Javon Company set standards of 2 hours of direct labor per unit at a

 Exercise 2116 (Algo) Computing and analyzing direct labor variances LO P3
Javon Company set standards of 2 hours of direct labor per unit
at a rate of $16.30 per hour. During October, the company actually
uses 13,200 hours of direct labor at a $217,800 total cost to

Exercise 2116 (Algo) Computing and analyzing direct labor variances LO P3 Javon Company set standards of 2 hours of direct labor per unit at a rate of $16.30 per hour. During October, the company actually uses 13,200 hours of direct labor at a $217,800 total cost to produce 6,900 units. In November, the company uses 17,200 hours of direct labor at a $284,660 total cost to produce 7,300 units of product. AH=ActualHoursSH=StandardHoursAR=ActualRateSR=StandardRate (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. (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 effect of each variance by selecting favorable, unfavorable, or no variance.) November \begin{tabular}{|l|l|l|} \hline & Actual Cost \\ \hline & & \\ \hline & & \\ \hline & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|} \hline & & \\ \hline & & 5 \\ \hline & D1 & \\ \hline \end{tabular} Required 2 > (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. Javon investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!