Direct Labor Variances Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data...
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Accounting
Direct Labor Variances
Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data for October of the current year are available:
Quantity of direct labor used
420 hrs.
Actual rate for direct labor
$11.80 per hr.
Bicycles completed in October
200 bicycles
Standard direct labor per bicycle
2 hrs.
Standard rate for direct labor
$12.00 per hr.
a. Determine for October the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Direct Labor Rate Variance
$fill in the blank 1
FavorableUnfavorableFavorable
Direct Labor Time Variance
$fill in the blank 3
FavorableUnfavorableUnfavorable
Total Direct Labor Cost Variance
$fill in the blank 5
FavorableUnfavorableUnfavorable
b. How much direct labor should be debited to Work in Process? $fill in the blank 7
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