Taglia Law Office has three labor classes: administrative assistants, paralegals, and attorneys. Standard wage rates are as follows: administrative assistants, $ 30 per hour; paralegals, $ 60 per hour; and attorneys, $ 125 per hour. For October, the numbers of actual direct labor hours worked and of standard hours for probate cases were as follows:

a. Calculate October’s direct labor efficiency variance as well as the direct labor mix variance and the direct labor yield variance.
b. Discuss whether management used an efficient mix oflabor.

Transcribed Image Text:

Number of Standard Hours Allowed Administrative assistant Paralegal Attomey Actual DLHs 900 2,520 1,500 1,008 2,772 1,260