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Problem - Direct labor variances - Provence Bicycle Company manufactures road bikes. The following data for September of the current year are available:
Quantity of direct labor used 650 hrs.
Actual rate for direct labor $14.00 per hr.
Bicycles completed in September 280
Standard direct labor per bicycle 2.25 hrs.
Standard rate for direct labor $14.20 per hr.
Required -
a. Determine the direct labor rate and time variances.
b. How much direct labor should be debited to Work in Process?
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Jeanne Maier, CPA, believes that is appropriate to obtain an understanding of internal control about halfway through the audit
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