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 $ Favorable  Direct Labor Time Variance $   Total Direct Labor Cost Variance $   b.  How much direct labor should be debited to Work in Process?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 740 hrs.
Actual rate for direct labor $10.90 per hr.
Bicycles completed in October 350 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 $ Favorable 
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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