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Calculating the Direct Labor Rate Variance and the Direct Labor Efficiency Variance Guillermo's Oil and Lubie Company is a service company that offers oil changes

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Calculating the Direct Labor Rate Variance and the Direct Labor Efficiency Variance Guillermo's Oil and Lubie Company is a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical oll change takes 24 minutes and 6.2 quarts of oil are used. In June, Guillermo's Oil and Lube had 980 oil changes. Guillermo's Oil and Lube Company provided the following information for the production of oil changes during the month of June Actual number of oil changes performed: 980 Actual number of direct labor hours worked: 386 hours Actual rate paid per direct labor hour $14.50 Standard rate per direct labor hour $14.00 Required: 1. Calculate the dea labor rate variance (RV) and the direct laboreficiency variance (LV) for June uong the formula approach Orect laborate vananca (LV) Direct labor efficiency varande (LV) 2. Calculate the direct laborate vanance () and the direct laboreticiency vanance (LEV) for uneing the graphical approach Direct laborate variance (LV) Direct laborency vanance (V) 2. Calculate the total de labor variance for chans for one 4. What the actual wage rate paldin lune was 512.407 What impact would that have had on the rect sharrate variance on the direct laborettoency vananc ( Actual number of direct labor hours worked: 386 hours Actual rate paid per direct labor hour: $14.50 Standard rate per direct labor hours $14,00 Required: 1. Calculate the direct labor rate variance (RV) and the direct labor efficiency variance (LEV) for June using the formula approach. Direct laborate variance (LRV) Direct labor efficiency variance (LEV) Favorable 2. Calculate the direct laborate vanance (RV) and th ty variance (LEV) for June using the graphical approach Unfavorable Orect laborate variance (LRV) Direct labor eficiency variance (LV) 3. Calculate the total direct labor variance for ou changes for June 1. What if the actual wage rate paid in June was $12.407 What impact would that have had on the direct labor rate variance (LAV) on the direct labor efficiency variance (LEV? Indicate what the new variances would be below. If regered, round your answers to the nearest et Direct laborate variance (RV) Dec laboriency vanane (LV)

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