Javon Company set standards of 3 hours of direct labor per unit at a rate...
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Javon Company set standards of 3 hours of direct labor per unit at a rate of $16.80 per hour. During October, the company actually uses 21,500 hours of direct labor at a $365,500 total cost to produce 7,400 units. In November, the company uses 25,500 hours of direct labor at a $434,775 total cost to produce 7,800 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 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 months. (Indicate the effect of each variance bv selectina favorable. unfavorable, or no variance.)
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