Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.50 per hour. During October, the company actually uses 11,500 hours of direct labor at a $180,550 total cost to produce 6,100 units. In November, the company uses 15,500 hours of direct labor at a $244,125 total cost to produce 6,500 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 urther?
Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.50 per hour. During October, the company actually uses 11,500 hours of direct labor at a $180,550 total cost to produce 6,100 units. In November, the company uses 15,500 hours of direct labor at a $244,125 total cost to produce 6,500 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 urther?
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 7PB: Marymount Company makes one product. In the month of April, it made 3,500 units. Workers were paid...
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