Question: Imello & Havers, CPAs, set the following standards for the staff portion of an audit at a large client company: 350 hours at an average

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.
Required:
(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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a AP AQ SP AQ SP SQ 180 325 180 350 60250 58500 63000 1750 U 4500 F Labor Rate Variance Labor Effic... View full answer

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