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Not sure why I haven't seen this earlier. Just my .02c since I work at a service department as well;
Talk to the fixed ops manager if your service manager isn't the same title. If not go speak with your HR person there.
In reality, if the service advisor of that work order written up the LOF line specifically to use synthetic oil, AND synthetic oil was billed out on the work order, your ass is safe. Or at least there's paper trail to cover your ass for.
And good on you that you didn't argue with him during his meltdown. And best bet is not to mention about it to him again if you'd like to continue working there with a now inflicted impression.
Good luck
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