Direct Labor Variances La Batre Bicycle Company manufactures commuter bicycles f

Question

Direct Labor Variances

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

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.

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

Quantity of direct labor used 540 hrs. Actual rate for direct labor $14.1 per hr. Bicycles completed in April 250 bicycles Standard direct labor per bicycle 2 hrs. Standard rate for direct labor $14.4 per hr.

Explanation / Answer

a) Direct labor rate variance (actual rate - standard rate)*actual hours (14.1-14.4)*540 162 F time variance (actual hours - standard hours allowed)*standard rate (540 - 250*2)*14.4 576 U total direct labor cost variance 414 U b) Direct labor hour debited to work in process inventory 250*2*14.4 7200 answer

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.