Labor Variances Verde Company produces wheels for bicycles. During the year, 657,000 wheels were produced. The actual labor used was 358,000 hours at $9.10 per hour. Verde has the following labor standards: 1) $9.90 per hour; 2) 0.48 hour per wheel. Required: 1. Compute the labor rate variance. Favorable 2. Compute the labor efficiency variance. Unfavorable