Question: Exercise 21-16 (Static) Computing and analyzing direct labor variances LO P3 Javon Company set standards of 3 hours of direct labor per unit at a

 Exercise 21-16 (Static) Computing and analyzing direct labor variances LO P3
Javon Company set standards of 3 hours of direct labor per unit
at a rate of \\( \\$ 15 \\) per houe. During October,

Exercise 21-16 (Static) Computing and analyzing direct labor variances LO P3 Javon Company set standards of 3 hours of direct labor per unit at a rate of \\( \\$ 15 \\) per houe. 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. \\[ \\begin{array}{l} \\text { AH- }=\\text { ActualHours } \\\\ S H=\\text { Standard Hours } \\\\ A R=\\text { Actual Rate } \\\\ S R=\\text { Standard Rate } \\end{array} \\] (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 varlance, and the total direct labor variance for each of these two months. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) labor at a \\( \\$ 335,500 \\) total cost to produce 6,000 units of product. \\[ \\begin{array}{l} \\mathrm{AH}=\\text { Actual Hours } \\\\ \\mathrm{SH}=\\text { Standard Hours } \\\\ \\mathrm{AR}=\\text { Actual Rote } \\\\ \\mathrm{SR}=\\text { Standard Rate } \\end{array} \\] (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? Compute the direct labor rate voriance, the direct labor efficiency variance, and the total direct labor variance for each of these two months. (Indicate

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!