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

$640$ hrs$.$

Actual rate for direct labor

$$13\mathrm{.}40$ per hr $.$

Bicycles completed in October

$300$ bicycles

Standard direct labor per bicycle

$2$ hrs $.$

Standard rate for direct labor

$$13\mathrm{.}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

$

$x$

Favorable

Direct Labor Time Variance

$

Unfavorable

Total Direct Labor Cost Variance

$

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