Question - Direct labor variances
Alpine Bicycle Company manufactures mountain bikes. The following data for May of the current year are available:
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Quantity of direct labor used
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780 hrs.
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Actual rate for direct labor
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$12.10 per hr.
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Bicycles completed in May
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370
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Standard direct labor per bicycle
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2 hrs.
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Standard rate for direct labor
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$12.30 per hr.
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Planned bicycles for May
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410
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Use the minus sign to enter favorable variances as negative numbers.
a. Determine the direct labor rate variance and direct labor time variance.
b. How much direct labor should be debited to Work in Process?