=+EX 23-8 Direct labor variances obj. 3

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a. Rate variance,

$730 U Alpine Bicycle Company manufactures mountain bikes. The following data for May of the current year are available:

Quantity of direct labor used 600 hrs.

Actual rate for direct labor $12.50 per hr.

Bicycles completed in May 280 Standard direct labor per bicycle 2 hrs.

Standard rate for direct labor $12.75 per hr.

Planned bicycles for May 310

a. Determine the direct labor rate and time variances.