bor Rate and Efficiency Variances lco Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.026 hour, During the month of April, 1,000,000 bottles were produced using 44,400 labor hours $15.00. The standard wage rate is $13.00 per hour. Required: Calculate the labor rate and efficiency variances using the columnar and formula approaches. Enter amounts as positive numbers and select Favorable or Unfavorable. Labor rate variance Labor efficiency variance Ferabock. - Creck My Won 1. Determine the labor rate variance by taking the difference between the standard and actual rates and then multiply by the actual labor houts used. LRV = (AR5R)AH 2. Compare the rate difference to assign this amount as either favorable or unfavorable. 3. Determine the laboc efficiency variance by taking the difference between the actual and standard hours and then multiplying by the standard labor rate. LEV =(AHSH)SR 4. Compare the rate difference to assign this amount as elther favorable or unfavorable. Review the "How to Calculate Labor Variances: Formula and Columnar Approsches" example in your text