eBook Show Me HowPrint Item

Question Content Area

Direct Labor Variances

Corpus Christi Bicycle Company manufactures commuter bicycles from recycled materials. Corpus Christi Bicycle Company records standard costs in its accounts. The following data for March are available:

Line Item Description Value

Quantity of direct labor used $2,600$ hrs$.$

Actual rate for direct labor $$32\mathrm{.}00$ per hr$.$

Bicycles completed in March $500$ bicycles

Standard direct labor per bicycle $5\mathrm{.}0$ hrs$.$

Standard rate for direct labor $$30\mathrm{.}00$ per hr$.$

a$.$ Determine for March 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.

Line Item Description Amount Variance

Direct Labor Rate Variance $fill in the blank $1$

Direct Labor Time Variance $fill in the blank $3$

Total Direct Labor Cost Variance $fill in the blank $5$

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

fill in the blank $1$ of $1$$