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Standard Labor Variances A CPA firm estimates that an audit will require the following work Type of Auditor Cost per Hour Manager $50 Senior 40 Staff 30 Total Expected Hours The actual hours and costs were: Type of Auditor Manager Senior Staff Total 10 20 40 70 Actual Hours. 9 22 44 75 Standard Costs $ 500 800 1,200 $2,500 Actual Cost per Hour $52 38 30 Actual Costs $ 468 836 1,320 $2,624

Standard Labor Variances A CPA firm estimates that an audit will require the following work Type of Auditor Cost per Hour Manager $50 Senior 40 Staff 30 Total Expected Hours The actual hours and costs were: Type of Auditor Manager Senior Staff Total 10 20 40 70 Actual Hours. 9 22 44 75 Standard Costs $ 500 800 1,200 $2,500 Actual Cost per Hour $52 38 30 Actual Costs $ 468 836 1,320 $2,624

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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< ces Standard Labor Variances A CPA firm estimates that an audit will require the following work: Type of Auditor Manager Senior Staff Total Expected Hours The actual hours and costs were: Type of Auditor Manager Senior Staff Total 10 20 40 70 Actual Hours 9 22 44 75 Cost per Hour $50 40 30 Standard Costs $ 500 800 1,200 $2,500 Actual Cost per Hour $52 38 30 Actual Costs $468 836 1,320 $2,624 Required: Calculate the direct labor wage and direct labor efficiency variances for each type of auditor and interpret.
Transcribed Image Text:< ces Standard Labor Variances A CPA firm estimates that an audit will require the following work: Type of Auditor Manager Senior Staff Total Expected Hours The actual hours and costs were: Type of Auditor Manager Senior Staff Total 10 20 40 70 Actual Hours 9 22 44 75 Cost per Hour $50 40 30 Standard Costs $ 500 800 1,200 $2,500 Actual Cost per Hour $52 38 30 Actual Costs $468 836 1,320 $2,624 Required: Calculate the direct labor wage and direct labor efficiency variances for each type of auditor and interpret.
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