Question

Direct Labor Variances Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data for October of the current year are available: Quantity of direct labor used 470 hrs. Actual rate for direct labor $12.70 per hr. Bicycles completed in October 220 bicycles Standard direct labor per bicycle 2 hrs. Standard rate for direct labor $13.00 per hr. a. Determine for October 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. ERA Direct Labor Rate Variance Direct Labor Time Variance Total Direct Labor Cost Variance ERAS b. How much direct labor should be debited to Work in Process?

Answer 1

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And a Dizert Labor sate variance = 4to (12.70-13.00) = -lul favorable Direct Laby time variance a 13 (4.to - 220x2) - $390 unfalourable Total Direct Laber Cast variance - Utox 12.7o – 220x2x13 11 5969-5720 11 = $249 unfavourable Disect Laby Debited to WIP = 220 x 2x13 = $5720 S

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