5. Russell Tax Services prepares tax returns for senior citizens. The standard in terms of (direct labor) time spent on each return is 3.0 hours. The direct labor standard wage rate at the firm is $16.50 per hour. Last month, 1,470 direct labor hours were used to prepare 500 tax returns. Total wages were $26,460. Read the requirements. Requirement 1. What is the actual (direct labor) wage rate per hour paid last month? (Round your answer to the nearest cent.) The actual (direct labor) wage rate per hour paid last month is $ 18.00 Requirement 2. What is the direct labor rate variance? (Abbreviations used: DL = Direct labor) Begin by determining the formula for the rate variance, then compute the rate variance for direct labor. (Enter the variance as a positive number. Round interim calculations to the nearest cent and your variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U).) (1) Standard rate (2) Actual rate (3) Standard hours allowed) DL rate variance (4) Requirement 3. What is the direct labor efficiency variance? (Abbreviations used: DL = Direct labor) Determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. (Enter the variance as a positive number. Round interim calculations to the nearest cent and your variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U).) (5) *( *( (6) (7) = DL efficiency variance (8) Requirement 4. How might the direct labor rate variance for the firm last month be causing the direct labor efficiency variance? The (9)- return preparers (11). variance. 1: Requirements direct labor rate variance might mean that Russell hired (10). As a result, the hours than the standard allows. This accounts for the (12). efficiency 1. What is the actual (direct labor) wage rate per hour paid last month? 2. What is the direct labor rate variance? 3. What is the direct labor efficiency variance? 4. How might the direct labor rate variance for the firm last month be causing the direct labor efficiency variance? (1) O 0000 0000 J Actual hours Actual rate Standard hours allowed Actual hours Actual rate Standard hours allowed (5) Standard rate (2) 0000 Actual hours Actual rate Standard hours allowed O Standard rate (4) OF 0000 Actual hours Actual rate Standard rate Actual hours Actual rate Standard hours allowed Standard hours allowed O Standard rate (8) (9) O Actual hours unfavorable favorable Actual rate (10) Standard hours allowed less qualified return preparers at a lower pay rate more qualified return preparers at a higher pay rate (12) favorable unfavorable Standard rate O Standard rate (11) had to use more were able to use fewer