avon Company set standards of 3 hours of direct labor per unit at a rate of $15.60 per hour. During October, the company actually uses 18,000 hours of direct labor at a $284,400 total cost to produce 6,200 units. In November, the company uses 22,000 hours of direct labor at a $348,700 total cost to produce 6.600 units of product H-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) Jevon 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.
avon Company set standards of 3 hours of direct labor per unit at a rate of $15.60 per hour. During October, the company actually uses 18,000 hours of direct labor at a $284,400 total cost to produce 6,200 units. In November, the company uses 22,000 hours of direct labor at a $348,700 total cost to produce 6.600 units of product H-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) Jevon 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.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 10E: Ada Clothes Company produced 40,000 units during April. The Cutting Department used 12,800 direct...
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