Determine the direct labor rate variance

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Reference no: EM133134428

Question - 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.

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

Reference no: EM133134428

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