Question

Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data for October are available:

Quantity of direct labor used 5,000 hrs.
Actual rate for direct labor $22.75 per hr.
Bicycles completed in October 800 bicycles
Standard direct labor per bicycle 6.0 hrs.
Standard rate for direct labor $24.00 per hr.

Requried:
a. Determine for October the direct labor rate variance, direct labor time variance, and total direct labor cost variance.
b. How much direct labor should be debited to Work in Process?

Answer 1

The answer will be $24 per hour
Hope this helps