Verde Company produces wheels for bicycles. During the year, 662,000 wheels were produced. The actual labor used was 366,000 hours at $9.40 per hour. Verde has the following labor standards: 1) $10.30 per hour; 2) 0.46 hour per wheel. Required: 1. Compute the labor rate variance. 2. Compute the labor efficiency variance. Favorable Unfavorable