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Direct Labor Variances La Batre Bicycle Company manufactures commuter bicycles from recycled materials. The following data...

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

750 hrs.

Actual rate for direct labor

$11.6 per hr.

Bicycles completed in April

350 bicycles

Standard direct labor per bicycle

2 hrs.

Standard rate for direct labor

$11.8 per hr.

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

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Answer #1

Direct labor debited to work in process = Actual bicycle*hour per bicycle*rate per hour

= 350*2*11.80

Direct labor debited to work in process = $8260

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