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Direct Labor Variances La Barte Company manufactures commuter bicycles from recycled materials. The following data for July of the current year are available: Quantity of
Direct Labor Variances
La Barte Company manufactures commuter bicycles from recycled materials. The following data for July of the current year are available:
Quantity of direct labor used | 690 hrs. |
Actual rate for direct labor | $11.60 per hr. |
Bicycles completed in July | 320 bicycles |
Standard direct labor per bicycle | 2 hrs. |
Standard rate for direct labor | $11.80 per hr. |
a. Determine the direct labor rate variance, 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/Unfavorable |
Direct labor time variance | fill in the blank 3 | Favorable/Unfavorable |
Total direct labor cost variance | $fill in the blank 5 | Favorable/Unfavorable |
b. How much direct labor should be debited to Work in Process? $fill in the blank 7
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