Direct Labor Variances La Batre Bicycle Company manufactures commuter bicycles from recycled materials. The following...
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Accounting
Direct Labor Variances
La Batre Bicycle Company manufactures commuter bicycles from recycled materials. The following data for July of the current year are available:
Quantity of direct labor used
680 hrs.
The actual rate for direct labor
$12 per hr.
Bicycles completed in April
320 bicycles
Standard direct labor per bicycle
2 hrs.
Standard rate for direct labor
$12.2 per hr.
a. Determine 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
$
Favorable
Direct Labor Time Variance
$
Unfavorable
Total Direct Labor Cost Variance
$
Unfavorable
b. How much direct labor should be debited to Work in Process? $
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