Question
Direct Labor Variances Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data for October of the current year are available: Quantity of
Direct Labor Variances
Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data for October of the current year are available:
| Quantity of direct labor used | 450 hrs. |
| Actual rate for direct labor | $14.40 per hr. |
| Bicycles completed in October | 210 bicycles |
| Standard direct labor per bicycle | 2 hrs. |
| Standard rate for direct labor | $14.70 per hr. |
a. Determine for October 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 | Favorable |
| Direct Labor Time Variance | $fill in the blank 3 | Unfavorable |
| Total Direct Labor Cost Variance | $fill in the blank 5 | Unfavorable |
b. How much direct labor should be debited to Work in Process?
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Beating The Finacial Futures Market 2023 Deluxe Edition Almanac
Authors: Art Collins
1st Edition
979-8375310534
