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Direct Labor Variances Corpus Christi Bicycle Company manufactures commuter bicycles from recycled materials. Corpus Christi Bicycle Company records standard costs in its accounts. The following

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Direct Labor Variances
Corpus Christi Bicycle Company manufactures commuter bicycles from recycled materials. Corpus Christi Bicycle Company records standard costs in its accounts. The following data for March are available:
Quantity of direct labor used
520hrs.
Actual rate for direct labor $11.00 per hr.
Bicycles completed in March
240 bicycles
Standard direct labor per bicycle
2hrs.
Standard rate for direct labor $11.20 per hr.
a. Determine for March 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
$ q,
Direct Labor Time Variance
s
Total Direct Labor Cost Variance
b. How much direct labor should be debited to Work in Process?
$M
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