(Appendix) Wisnowski & Coffin has three labor classes: secretaries, paralegals, and attorneys. The standard wage rates are shown in the standard cost system as follows: secretaries, $11 per hour; paralegals, $18 per hour; and attorneys, $44 per hour. The firm has established a standard of .5 hours of secretarial time and 2 hours of paralegal time for each hour of attorney time in probate cases. The actual direct labor hours worked on probate cases and the standard hours allowed for the work accomplished for one month in 1996 were as follows:

a. Calculate the amount of the direct labor efficiency variance for the month 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.

LO1

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ACTUAL DLHS Secretarial 500 Paralegal 1,800 Attorney 1,100 STANDARD HOURS FOR OUTPUT ACHIEVED 500 2,000 1,000