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Direct Materials and Direct Labor Variances

At the beginning of June, Bezco Toy Company budgeted 22,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows:

Direct materials	$22,000
Direct labor	13,860
Total	$35,860

The standard materials price is $0.5 per pound. The standard direct labor rate is $9 per hour. At the end of June, the actual direct materials and direct labor costs were as follows:

Actual direct materials	$19,700
Actual direct labor	12,400
Total	$32,100

There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Bezco Toy Company actually produced 19,100 units during June.

Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct materials quantity variance	$fill in the blank 1	FavorableUnfavorableUnfavorable
Direct labor time variance	$fill in the blank 3	FavorableUnfavorableUnfavorable

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question 2.

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	670 hrs.
Actual rate for direct labor	$14.2 per hr.
Bicycles completed in April	310 bicycles
Standard direct labor per bicycle	2 hrs.
Standard rate for direct labor	$14.5 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	$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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