60.1K

Verified Solution

Link Copied!

4 1429 DO Javonte Co set standards of 3 hours of direct labor per unit of product and $16.20 per hour for the labor rate. During October, the company uses 20.000 hours of direct labor at a 5328,000 total cost to produce 5,800 units of product. In November, the company uses 24.000 hours of direct labor at a $394 800 total cost to produce 7200 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) Javante investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company Investigate further? BOOK Hint Prim Complete this question by entering your answers in the tabs below. Derences Required 1 Required 2 Compute the direct labor rate variance, the direct laborefidency variance, and the total direct labor cost variance for each of these two month. 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 Cast November Metal Cor Required 2 > NO 4. 14.28 DO Javonte Co set standards of 3 hours of direct labor per unit of product and $16.20 per hour for the labor rate. During October, the company uses 20,000 hours of direct laborat a $328,000 total cost to produce 6.800 units of product. In November, the company uses 24.000 hours of direct labor ata $394,800 total cost to produce 7.200 units of product AH Actual Hours SH - Standard Hours AR Actual Rate SR Standard Rate elos (1) Compute the direct labor rate variance, the direct labor efficiency vanance, 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? Print Complete this question by entering your answers in the tabs below. Beherences Required 1 Required 2 Javonte investigates variances of more than 5% of actual direct labor cost, which direct labor variance will the company investigate further? Which direct labor variances will the company to further Required 1

Answer & Explanation Solved by verified expert

See Answer