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 $12.20 per hr. Bicycles completed in October 220 bicycles Standard direct labor per bicycle 2 hrs. Standard rate for direct labor $12.40 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 v Direct Labor Time Variance Unfavorable v Total Direct Labor Cost Variance Unfavorable b. How much direct labor should be debited to Work in Process?
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 $12.20 per hr. Bicycles completed in October 220 bicycles Standard direct labor per bicycle 2 hrs. Standard rate for direct labor $12.40 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 v Direct Labor Time Variance Unfavorable v Total Direct Labor Cost Variance Unfavorable b. How much direct labor should be debited to Work in Process?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Performance Eval Variances: Refer to the picture. Thank you!
Transcribed Image Text: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
$12.20 per hr.
Bicycles completed in October
220 bicycles
Standard direct labor per bicycle
2 hrs.
Standard rate for direct labor
$12.40 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
umber.
Direct Labor Rate Variance
Favorable
Direct Labor Time Variance
Unfavorable
Total Direct Labor Cost Variance
Unfavorable v
b. How much direct labor should be debited to Work in Process?
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