Saunders Tax Services prepares tax returns for senior citizens. The standard in terms of (direct labor) time spent on each return is 4 hours. The direct labor standard wage rate at the firm is $13.50 per hour. Last month, 3,180 direct labor hours were used to prepare 800 tax returns. Total wages were $44,520 Requirements x your answer to the nearest cent.) 1. What is the actual (direct labor) wage rate per hour paid last month? 2. What is the direct labor rate variance? 3. What is the direct labor efficiency variance? 4. How might the direct labor rate variance for the firm last month be causing the direct labor efficiency variance? Requirement 1. What is the actual (direct labor) wage rate per hour paid last month? (Round your answer to the nearest cent.) The actual (direct labor) wage rate per hour paid last month is Requirement 2. What is the direct labor rate variance? (Abbreviations used: DL = Direct labor) Begin by determining the formula for the rate variance, then compute the rate variance for direct labor. (Enter the variance as a positive number. Round interim calculations to the nearest cent and your variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U).) Actual hours x Actual rate Standard rate DL rate variance x $ U Requirement 3. What is the direct labor efficiency variance? (Abbreviations used: DL = Direct labor) Determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. (Enter the variance as a positive number. Round interim calculations to the nearest cent and your variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U).) Standard rate Actual hours Standard hours allowed - DL efficiency variance ) = $ F $ A x Requirement 4. How might the direct labor rate variance for the firm last month be causing the direct labor efficiency variance? The unfavorable direct labor rate variance might mean that Sarmento hired more qualified return preparers at a higher pay rate . As a result, the return preparers were able to use fewer hours than the standard allows. This accounts for the favorable efficiency variance