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

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Calculating the Direct Labor Rate Variance and the Direct Labor Efficiency Variance Guillermo's Oil and Lube Company is a service company that offers all changes and lubrication for automobiles and light trucks. On average, Guillermo 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 Oll and Lube Company provided the following information for the production of all changes during the month of June; Actual number of oil changes performed: 970 Actual number of direct labor hours worked: 481 hours Actual rate paid per direct labor hour: $15.00 Standard rate per direct labor hour: $14.00 Required: 1. Calculate the direct labor rate variance (LRV) and the direct labor efficiency variance (LEV) for June using the formula approach Direct labor rate variance (LRV) 481 Unfavorable 93 Direct labor efficiency variance (LEV) S Unfavorable 2. Calculate the direct labor rate variance (LRV) and the direct labor efficiency variance (LEV) for June. Direct labor rate variance (LRV) Favorable Unfavorable Direct labor efficiency variance (LEV) $ 3. Calculate the total direct labor variance for oil changes for June. Unfavorable in in the dirt lahor efficiency varia mation for the production of oil changes during the month of June Actual number of all changes performed: 970 Actual number of direct labor hours worked: 481 hours Actual rate paid per direct labor hour: $15.00 Standard rate per direct labor hour: $14.00 $ 481 Unfavorable 93 Required: 1. Calculate the direct tabor rate tariance (LRV) and the direct labor efficiency variance (LEV) for June using the formula approach Direct labor rate variance (LRV) Direct labor efficiency variance (LE) Unfavorable 2. Calculate the direct labor rate variance (LRV) and the direct labor efficiency variance (LEV) for Junc. Direct labor rate variance (URV) Favorable Direct labor efficiency variance (LEV) Unfavorable 3. Calculate the total direct labor variance for oil changes for June Unfavorable 4. What if the actual wage rate paid in June was $13.00% What impact would that have had on the direct labor rate variance (LRV)? On the direct labor efficiency variance CLEVI? Indicate what the new variances would be below. If required, round your answers to the nearest cent. Direct labor rate variance (LRV): Favorable Direct labor efficiency variance (LEV): Unfavorable

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