Blue Ridge Bicycle Company manufactures mountain bikes. The following data for May of the current year are available:
|
Quantity of direct labor used |
1,400 hours |
|
Actual rate for direct labor |
$16.15 per hour |
|
Bicycles completed in May |
280 |
|
Standard direct labor per bicycle |
5.30 hours |
|
Standard rate for direct labor |
$15.25 per hour |
|
Planned bicycles for May |
210 |
a. Determine the direct labor rate and time variances.
b. How much direct labor should be debited to Work in Process?