Question
Question Content Area Direct Labor Variances La Barte Company manufactures commuter bicycles from recycled materials. The following data for July of the current year are
Question Content Area
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 | 5,050 hrs. |
| Actual rate for direct labor | $16.80 per hr. |
| Bicycles completed in July | 1,000 bicycles |
| Standard direct labor per bicycle | 5.4 hrs. |
| Standard rate for direct labor | $16.00 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 | 4040 | Unfavorable |
| Direct labor time variance | -5600 | Favorable |
| Total direct labor cost variance | -1560 | Favorable |
b. How much direct labor should be debited to Work in Process? $
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Managerial Accounting
Authors: Ray Garrison, Eric Noreen, Peter Brewer
15th edition
1259404781, 007802563X, 978-1259404788, 9780078025631, 978-0077522940
