Secure Tax Services prepares tax returns for senior citizens. The standard in terms of (direct labor) time spent on each return is 5 hours. The direct labor standard wage rate at the firm is $13.00 per hour. Last month, 2,470 direct labor hours were used to prepare 500 tax returns. Total wages were $37,050.

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? (Enter the variance as a positive number. Round intermediary calculations to the nearest cent and your variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U).)

The direct labor rate variance is

Requirement 3. What is the direct labor efficiency variance? (Enter the variance as a positive number. Round intermediary calculations to the nearest cent and your variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U).)

The direct labor efficiency variance is

Requirement 4.

How might the direct labor rate variance for the firm last month be causing the direct labor efficiency variance?

The ______ (unfavorable or favorable?) direct labor variances might mean that secure hired ________ (less qualified return preparers at a lower rate pay or more qualified at a higher pay rate)?. As a result, the return preparers _____ ( had to use more or were able to use fewer) hours than the standard rate. This accounts for the ______ (favorable or unfavorable) efficiency variance