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

Actual rate for direct labor

Bicycles completed in March

Standard direct labor per bicycle

Standard rate for direct labor

$680$ hrs$.$

$$12\mathrm{.}20$ per hr$.$

$320$ bicycles

$2$ hrs$.$

$$12\mathrm{.}40$ 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

Direct Labor Time Variance

$ $$

Total Direct Labor Cost Variance $

$$

$$

$$

$$

b$.$ How much direct labor should be debited to Work in Process?

$