eBook Calculating the Direct Labor Rate Variance and the Direct Labor Efficiency Variance Gallermo's Oil and Lube Company in a service company that offers oil changes and lubrication for automobiles and light trucks. On average, Guillermo has found that a typical od change Takes 24 minutes and 6.2 quarts of oil are used. In June, Guillermo's Oil and Lube had 980 of changes. Guillermo's Oil and Lube Company provided the following wiformation for the production of oil changes during the month of June Actual number of oil changes performed: 980 Actual number of deect 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 direct labor rate variance (LAV) and the direct labor efficiency vanance (LEV) for line using the formula approach. Direct labor rate variance (URV) Direct labor efficiency variance (LEV) 84 X 109 X Unfavorable Favorable 2. Calculate the total direct labor variance for oil changes for June 3. What if the actual wage rate paid in June was $12.407 What impact would that have had on the direct lation rate variance (LRV) On the direct labor efficiency variance (LEVY Indicate what the new variances would be below. If required, round your answers to the nearest cent. Direct labor rate vanance (LRV): Check My Work Previous Next>