Provence Bicycle Company manufactures road bikes. The following data for September of the current year are available:
- Quantity of direct Labor used: 650 hrs
- Actual rate for direct labor: $14/hr
- Bicycles completed in September: 280
- Standard direct labor per bicycle: 2.25 hrs
- standard rate for direct labor: $14.20/hr
a. Determine the direct labor rate variance and direct labor time variance. Use the minus sign to enter favorable variances as negative numbers.
- Rate variance:$
- Time variance:$
- Total direct labor cost variance:$
b. How much direct labor should be debited to Work in Process?$