Alpine Bicycle Company manufactures mountain bikes. The following data for May of the current year are available:

Use the minus sign to enter favorable variances as negative numbers.


a. Determine the direct labor rate variance and direct labor time variance.

To determine the direct labor rate variance and direct labor time variance, we need the following information:

1. Actual direct labor hours worked: This is the total number of hours the employees worked during May.

2. Standard direct labor rate per hour: This is the predetermined rate at which the company expects to pay its employees.

3. Actual direct labor rate per hour: This is the actual rate at which the company paid its employees in May.

4. Standard direct labor time per unit: This is the predetermined time it should take to complete one unit of production.

5. Actual number of units produced: This is the total number of units produced in May.

Now, let's calculate the variances:

Direct labor rate variance:
1. Calculate the standard direct labor cost: Multiply the standard direct labor rate per hour by the actual direct labor hours worked.
Standard direct labor cost = Standard direct labor rate per hour x Actual direct labor hours worked

2. Calculate the actual direct labor cost: Multiply the actual direct labor rate per hour by the actual direct labor hours worked.
Actual direct labor cost = Actual direct labor rate per hour x Actual direct labor hours worked

3. Calculate the direct labor rate variance: Subtract the standard direct labor cost from the actual direct labor cost.
Direct labor rate variance = Actual direct labor cost - Standard direct labor cost

Direct labor time variance:
1. Calculate the standard direct labor hours allowed: Multiply the standard direct labor time per unit by the actual number of units produced.
Standard direct labor hours allowed = Standard direct labor time per unit x Actual number of units produced

2. Calculate the direct labor time variance: Multiply the difference between the standard direct labor hours allowed and the actual direct labor hours worked by the standard direct labor rate per hour.
Direct labor time variance = (Standard direct labor hours allowed - Actual direct labor hours worked) x Standard direct labor rate per hour

Remember to use the minus sign to enter favorable variances as negative numbers.

By following these steps and using the given data, you can determine the direct labor rate variance and direct labor time variance for Alpine Bicycle Company.