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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:
Quantity of direct labor used 580 hrs.
Actual rate for direct labor $10.8 per hr.
Bicycles completed in April 270 bicycles
Standard direct labor per bicycle 2 hrs.
Standard rate for direct labor $11 per hr.
Required -
a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance.
b. How much direct labor should be debited to Work in Process?
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