Verde Company produces wheels for bicycles. During the year, 655,000 wheels were produced. The actual labor used was 368,000 hours at $9.70 per hour. Verde has the following labor standards: 1) $10.40 per hour; 2) 0.47 hour per wheel. Required: 1. Compute the labor rate variance. Favorable 2. Compute the labor efficiency variance. Unfavorable