Exercise 21-16 (Algo) Computing and analyzing direct labor variances LO P3 Javon Company set standards...

70.2K

Verified Solution

Question

Accounting

imageimage

Exercise 21-16 (Algo) Computing and analyzing direct labor variances LO P3 Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.70 per hour. During October, the company actually uses 12,000 hours of direct labor at a $190,800 total cost to produce 6,300 units. In November, the company uses 16,000 hours of direct labor at a $255,200 total cost to produce 6,700 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? 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.) Exercise 21-16 (Algo) Computing and analyzing direct labor variances LO P3 Javon Company set standards of 2 hours of direct labor per unit at a rate of $15.70 per hour. During October, the company actually uses 12,000 hours of direct labor at a $190,800 total cost to produce 6,300 units. In November, the company uses 16,000 hours of direct labor at a $255,200 total cost to produce 6,700 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? 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