(Appendix) Holly Sherman Legal Services has three labor classes: secretaries, paralegals, and attorneys. Standard wage rates are as follows: secretaries, $25 per hour; paralegals, $40 per hour; and attorneys, $85 per hour. The firm has established a standard of 0.5 hours of secretarial time and 2.0 hours of paralegal time for each hour of attorney time in probate cases. For October, the numbers of actual direct labor hours worked and of standard hours al¬ lowed for probate cases were as follows:

a. Calculate October’s direct labor efficiency variance and decompose the total into the following components:
1. Direct labor mix variance 2. Direct labor yield variance

b. Prepare a memo addressing whether management used an efficient mix of labor.LO.1

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Actual DLHS 500 Number of Standard Hours Allowed Secretarial 500 Paralegal 1,800 2,000 Attorney 1,100 1,000