Exercise Algo Computing and analyzing direct labor variances LO P
Javon Company set standards of hours of direct labor per unit at a rate of $ per hour. During October, the company actually
uses hours of direct labor at a $ total cost to produce units. In November, the company uses hours of
direct labor at a $ total cost to produce units of product.
Actual Hours
Standard Hours
Actual Rate
Standard Rate
Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor variance for each of these two
months.
Javon investigates variances of more than 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 months. Indicate the
effect of each variance by selecting favorable, unfavorable, or no variance.
