3. La Batre Bicycle Company manufactures commuter bicyclesfrom recycled materials. The following data for July of thecurrent year are available:CategoryQuantity of direct labor usedActual rate for direct laborAmount5,050 hrs.$16.75 per hr.1,000 bicyclesBicycles completed in AprilStandard direct labor per bicycle 5.4 hrs.Standard rate for direct labor $16.00 per hr.a. Determine the direct labor rate variance, direct labortime variance, and total direct labor cost variance.b. How much direct labor should be debited to Work inProcess?

Direct labor variance is the difference between standard direct labor cost for actual production and…

3. La Batre Bicycle Company manufactures commuter bicycles from recycled materials. The following data for July of the current year are available: Category Quantity of direct labor used Actual rate for direct labor Bicycles completed in April Standard direct labor per bicycle 5.4 hrs. Standard rate for direct labor $16.00 per hr. Amount 5,050 hrs. $16.75 per hr. 1,000 bicycles a. Determine 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?

3. La Batre Bicycle Company manufactures commuter bicycles from recycled materials. The following data for July of the current year are available: Category Quantity of direct labor used Actual rate for direct labor Bicycles completed in April Standard direct labor per bicycle 5.4 hrs. Standard rate for direct labor $16.00 per hr. Amount 5,050 hrs. $16.75 per hr. 1,000 bicycles a. Determine 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?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter26: Manufacturing Accounting: The Job Order Cost System

Section: Chapter Questions

Problem 8SPA: JOURNAL ENTRIES FOR MATERIAL, LABOR, AND OVERHEAD Eto Manufacturing had the following transactions...

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