Verde Company produces wheels for bicycles. During the year, 330,000 wheels were produced. The actual labor used

Question:

Verde Company produces wheels for bicycles. During the year, 330,000 wheels were produced. The actual labor used was 180,000 hours at $9.25 per hour. Verde has the following labor standard: 0.5 hour at $10.

Required:
1. Compute the labor rate variance.
2. Compute the labor efficiency variance.