2 hrs. 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 560 hrs. Actual rate for direct labor $11.2 per hr. Bicycles completed in April 260 bicycles Standard direct labor per bicycle Standard rate for direct labor $11.4 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? Feedback Check My Work Unfavorable variances can be thought of as increasing costs (a debit). Favorable variances can be thought of as decreasing costs (a credit) The labor cost variance is the difference between the actual and standard labor cost. Learning Objective 3. Learning Objective 5