O'Connell & Associates, a firm of architects, has three levels of professional staff: principals (managers), who manage all aspects of the architectural job; senior architects, who are responsible for the main designs; and junior architects, who provide technical support. Budgeted costs for five architectural jobs done over a recent period are as follows:

Actual hours worked and the actual rates per hour to complete the five jobs are

Required
1. Calculate the total direct labour price and efficiency variances for the five jobs.
2. Calculate the total direct labour mix and yield variances for the five jobs.
3. Comment on your results in requirements 1 and 2.
4. How might managers use information about the direct labour yield and mix variances?

Transcribed Image Text:

600 principal-hours at 105 per hour 1800 senior-hours at 75 per hour 3600 junior-hours at 25 per hour 63 000 135 000 90000 295 principal-hours at 108 per hour 2360 senior-hours at 70 per hour 3245 junior-hours at 30 per hour 31 860 165 200 97 350