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Direct Labor Variances La Batre Bicycle Company manufactures commuter bicycles from recycled materials. The following data for July of the current year are available: Quantity

Direct Labor Variances

La Batre Bicycle Company manufactures commuter bicycles from recycled materials. The following data for July of the current year are available:

Quantity of direct labor used 550 hrs.
Actual rate for direct labor $13.4 per hr.
Bicycles completed in April 260 bicycles
Standard direct labor per bicycle 2 hrs.
Standard rate for direct labor $13.7 per hr.

a. Determine 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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