Environmental Business Consultants. Inc. (EBC) has hired several new staff members in the last year and has invested considerable effort in training these new employees in the EBC approach to conducting rate review projects. Due to the unique market in which EBC operates, there are not commercial training conferences or online training materials available to provide the necessary training. Therefore, the training is done primarily on the job by EBC managers, resulting in extra hours over what is typically incurred in completing this type of project. EBC management is interested in estimating the cost of this on-the-job training in terms of "lost billings," that is, the billing value of the extra hours incurred by both managers and staff as compared with normal budgeted hours. This is equivalent to the labor efficiency variance. Assume that for the year just ended, EBC completed 25 rate review projects. The following table shows the normal hourly budget for managers and staff on a rate review project. EBC managers billed a total of 1.200 hours and staff billed a total of 3,500 hours on rate review projects during the year. For the year, managers were billed at a standard rate of \($200\) per hour and staff were billed at a standard rate of \($120\) per hour.

Required:
Determine the total labor efficiency variance for both managers and staff for the year.

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Budgeted hours per rate review project. Managers Staff 40 120