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Labor Variances Verde Company produces wheels for bicycles. During the year, 658,000 wheels were produced. The actual labor used was 364,000 hours at $9.70

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Labor Variances Verde Company produces wheels for bicycles. During the year, 658,000 wheels were produced. The actual labor used was 364,000 hours at $9.70 per hour. Verde has the following labor standards: 1) $10.00 per hour; 2) 0.46 hour per wheel. Required: 1. Compute the labor rate variance. 2. Compute the labor efficiency variance.

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