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 rms staff personnel actually worked 325 hours during the audit, and the client was billed $60,250 Required (a) Compute the labor rat...

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Imello & Havers, CPAs, set the following standards for the staff portion of an audit at a

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 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?