Calculating the Direct Labor Rate Variance and the Direct Labor Efficiency Variance Guiltermo's Oil and Lube Company is a service company that offers oll changes and lubrication for automobiles and light trucks. On average, Gulliermo has found that a typical oil change takes 30 minutes and 6.2 quarts of oil are used. In June, Guillermo's Oil and Lube had 970 oil changes. Guillermo's OAl and Lube Company provided the following information for the production of of changes during the month of June: Actual number of oil changes performed: 970 Actual number of direct labor hours worked: 478 hours Actual rate paid per direct labor hour: $15.00 Standard rate per direct labor hour: $14.50 Required: If required, round your answers to the nearest cent. 1. Calculate the direct labor rate variance (LRV) and the direct labor efficiency variance (LEV) for June using the formula opproach. t ! 2. Calculate the total direct labor variance for oll changes for June. 3. What if the actual wage rate paid in June was $14.00 ? What impact would that have had on the direct labor rate variance (LRV? On the direct labor efficlency variance (LEV)? Indicate what the new variances would be below. 3. What if the actual wage rate paid in June was $24.00 ? What impact would that have had on the direct labor rate varlance (LRV)? On the direct labor efficiency variance (LEV)? Indicate what the new variances would be below. Direct tabor rate variance (LRV): Direct Labor efficiency variance (LV)