Direct labor variances—solving for unknownsAckerman’s Garage uses standards to planand control labor time and expense. The standard time for an engine tune-up is 3 hours, and thestandard labor rate is $25 per hour. Last week, 42 tune- ups were completed. The laborefficiency variance was 14 hours unfavorable, and the labor rate variance totaled $140favorable.Required:a. Calculate the actual direct labor hourly rate paid for tune-up work last week.b. Calculate the dollar amount of the labor efficiency variance.c. What is the most likely explanation for these two variances? Is this a good trade-off for themanagement of the garage to make? Explain your answer.