standard wage rate of $20.50 per hour. During July, Amy paid $195,800 to Amy Co has a direct labor standard of 2 hours per unit of output. Each employee has employees for 8,900 hours worked. 4,710 units were produced during July. Compute the variance by showing your work. (no work, no points) Indicate the amount and whether the variance is favorable or unfavorable. In one sentence, explain why the variance is favorable or unfavorable. a. What is the direct labor rate variance? b. What is the direct labor efficiency variance