Direct Labor Variances

Re-Cycle Company manufactures commuter bicycles from recycled materials. The following data for July of the current year are available:

Quantity of direct labor used	520 hrs.
Actual rate for direct labor	$13.40 per hr.
Bicycles completed in July	240 bicycles
Standard direct labor per bicycle	2 hrs.
Standard rate for direct labor	$13.70 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	$fill in the blank 1	FavorableUnfavorable
Direct labor time variance	fill in the blank 3	FavorableUnfavorable
Total direct labor cost variance	$fill in the blank 5	FavorableUnfavorable

b. How much direct labor should be debited to Work in Process? $fill in the blank 7