Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 9. javon company set standards of 2 hours of dire

9. Javon Company set standards of 2 hours of direct labor per unit at...

80.2K

Verified Solution

Question

Accounting

9.imageimageimage

Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.80 per hour. During October, the company actually uses 12,100 hours of direct labor at a $193,600 total cost to produce 6,400 units. In November, the company uses 16,100 hours of direct labor at a $258,405 total cost to produce 6,800 units of product. AH=ActualHoursSH=StandardHoursAR=ActualRateSR=StandardRate (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? 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.) Required 2> 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

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students