Labor Variances Verde Company produces wheels for bicycles. During the year, 650,000 wheels were produced. The actual labor used was 362,000 hours at $9.20 per hour. Verde has the following labor standards: 1) $9.90 per hour; 2) 0.47 hour per wheel. Required: 1. Compute the labor rate variance. $ 253,400 Favorable 2. Compute the labor efficiency variance. $370,000 X Unfavorable Standard Costing Botella Company produces plastic bottles. The unit for costing purposes is a case of 18 bottles. The following standards for producing one case of bottles have been established: Direct materials (4 lbs. @ $0.95) Direct labor (1.25 hours @ $15.00) $ 3.80 18.75 Standard prime cost 22.55 During December, 78,000 pounds of material were purchased and used in production. There were 15,000 cases produced, with the following actual prime costs: Direct materials Direct labor $ 74,000 $315,000 (for 22,500 hrs.) Required: 1. Compute the materials variances. If there is no variance, enter "0" in the amount box and select "No variance" from the dropdown menu. Materials price variance Favorable Materials usage variance Unfavorable Overall materials variance Unfavorable 2. Compute the labor variances. If there is no variance, enter "0" in the amount box and select "No variance" from the dropdown menu. Labor rate variance Labor efficiency variance $ Favorable Unfavorable Overall labor variance Unfavorable