S11-5 Calculate direct labor variances (Learning Objective 3)Speedy Oil performs oil changes. The standard wage rate for oil change technicians is $15 per hour. By analyzing its past records of time spent on oil changes, Speedy Oil has developed a standard of 15 minutes (or 0.25 hours) per oil change.In July, 1,200 oil changes were performed at Speedy Oil. Oil change technicians worked a total of 280 direct labor hours at an average rate of $16 per hour.

RequirementCalculate the direct labor efficiency variance.