Question: Imello Havers CPAs set the following standards for the

Imello & Havers, CPAs, set the following standards for the staff portion of an audit at a large client company: 350 hours at an average billing rate of $180 per hour. The firm’s staff personnel actually worked 325 hours during the audit, and the client was billed $60,250.
(a) Compute the labor rate, efficiency, and total labor variances for the audit.
(b) What concerns might the partners at Imello & Havers, CPAs, have because fewer hours were worked than were budgeted?

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