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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
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 | 540 hrs. |
Actual rate for direct labor | $10.7 per hr. |
Bicycles completed in April | 250 bicycles |
Standard direct labor per bicycle | 2 hrs. |
Standard rate for direct labor | $10.9 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 | FavorableUnfavorableFavorable | |
Direct Labor Time Variance | FavorableUnfavorableUnfavorable | |
Total Direct Labor Cost Variance | FavorableUnfavorableUnfavorable |
b. How much direct labor should be debited to Work in Process?
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