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Hoschild Bicycle Company manufacturers bicycles. The following data for September of the current year are available:
Quantity of direct labor used 850 hrs
Actual rate for direct labor $15.60 per hr
Bicycles completed in Sept 400
Standard direct labor per bicycle 2 hrs
Standard rate for direct labor $16.00 per hr
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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