Question
Polymer Oil performs oil changes. The standard wage rate for oil change technicians is $23 per hour. By analyzing its past records of time
Polymer Oil performs oil changes. The standard wage rate for oil change technicians is $23 per hour. By analyzing its past records of time spent on oil changes, the company has developed a standard of 15 minutes (or 0.25 hours) per oil change. In July, 1,100 oil changes were performed at Polymer Oil, Oil change technicians worked a total of 260 direct labor hours at an average rate of $25 per hour. Read the requirements. Requirement 1. Calculate the direct labor rate variance. (Enter the result as a positive number, rounded to the nearest whole dollar. Label the variance as favorable (F or unfavorable (U).) The direct labor rate variance is Requirement 2. Calculate the direct labor efficiency variance. (Enter the result as a positive number, rounded to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U).) The direct labor efficiency variance is
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