Blue Ridge Bicycle Company manufactures mountain bikes. The following data for May of the current year are

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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?

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Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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Question Posted: Jul 17, 2012 07:30 AM

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Blue Ridge Bicycle Company manufactures mountain bikes. The following data for May of the current year are

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a Rate variance Actual rate 1615 Standard rate 1525 Difference 090 Actual hours used 1400 Rate var...View the full answer

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