Question: Campa Oil performs oil changes. The standard wage rate for oil change technicians is $ 20 per hour. By analyzing its past records of time

Campa Oil performs oil changes. The standard wage rate for oil change technicians is $ 20 per hour. By analyzing its past records of time spent on oil changes, Casta Oil has developed a standard of 21 minutes (or 0.35 hours) per oil change. In July, 800 oil changes were performed at Campa Oil. Oil change technicians worked a total of 260 direct labor hours at an average rate of $ 23 per hour.

Requirements

1. Calculate the direct labor rate variance.

2. Calculate the direct labor efficiency variance.

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