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 500 hrs. Actual rate for direct labor

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 1PB: Direct materials and direct labor variance analysis Lenni Clothing Co. manufactures clothing in a...
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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 500 hrs.
Actual rate for direct labor $10.90 per hr.
Bicycles completed in October 240 bicycles
Standard direct labor per bicycle 2 hrs.
Standard rate for direct labor $11.10 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.

Direct Labor Rate Variance    
Direct Labor Time Variance    
Total Direct Labor Cost Variance    

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

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