Calista & Lane, CPAs, set the following standard for its inventory audit of Triumph Co.: 350 hours

Question:

Calista & Lane, CPAs, set the following standard for its inventory audit of Triumph Co.: 350 hours at an average hourly billing rate of $250. The firm actually worked 330 hours during the inventory audit process. The total labor variance for the audit was $3,500 unfavorable.
a. Compute the total actual payroll.
b. Compute the labor efficiency variance.
c. Compute the labor rate variance.
d. Prepare the entry to assign labor costs to inventory, record the labor variances, and accrue payroll costs.
e. Write a memo to the appropriate personnel regarding feedback about the labor efficiency variance. The memo should also offer a brief explanation that is consistent with the labor rate and efficiency variances.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Cost Accounting Foundations And Evolutions

ISBN: 9781618533531

10th Edition

Authors: Amie Dragoo, Michael Kinney, Cecily Raiborn

Question Posted: