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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 550 hrs.
Actual rate for direct labor $12.80 per hr.
Bicycles completed in October 260 bicycles
Standard direct labor per bicycle 2 hrs.
Standard rate for direct labor $13.10 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 $
Direct Labor Time Variance $
Total Direct Labor Cost Variance $

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

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