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Direct Labor Variances

Re-Cycle Company manufactures commuter bicycles from recycled materials. The following data for July of the current year are available:

Quantity of direct labor used	520 hrs.
Actual rate for direct labor	$11.60 per hr.
Bicycles completed in July	240 bicycles
Standard direct labor per bicycle	2 hrs.
Standard rate for direct labor	$11.80 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 Variances Re-Cycle Company manufactures commuter bicycles from recycled materials. The following data for July of the current year are available: Quantity of direct labor used 520 hrs. Actual rate for direct labor $11.60 per hr. Bicycles completed in July 240 bicycles Standard direct labor per bicycle 2 hrs. Standard rate for direct labor $11.80 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 Direct labor time variance Total direct labor cost variance b. How much direct labor should be debited to Work in Process? $

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