Please explain how the first two requirements were solved.

1.	Compute the expected cost and the variance.
2.	The supervisor believes that audit work should be conducted more productively and that superfluous personnel should be transferred to field audits. If the foregoing data are representative, how many auditors should be transferred?

Auditors for the Internal Revenue Service (IRS) scrutinize income tax returns after they have been prescreened with the help of computer tests for normal ranges of deductions claimed by taxpayers. The IRS uses an expected cost of $5 per tax return, based on measurement studies that allow 15 minutes per return. Each agent has a workweek of 5 days of 8 hours per day. Sixteen auditors are employed at a salary of $780 each per week. The audit supervisor has the following data regarding performance for the most recent 4-week period, when 8,200 returns were processed: (Click the icon to view the data.) Requirements 1. Compute the expected cost and the variance. 2. The supervisor believes that audit work should be conducted more productively and that superfluous personnel should be transferred to field audits. If the foregoing data are representative, how many auditors should be transferred? 3. List some possible reasons for the variance. 4. Describe some alternative cost drivers for processing income tax returns. auditors variance processing returns $ 41,000 $ 49,920 $ 8,920 Requirement 2. The supervisor believes that audit work should be conducted more productively and that superfluous personnel should be transferred to field audits. If the foregoing data are representative, how many auditors should be transferred? (Round the auditors needed up to the next whole number, then determine how many auditors should be transferred.) If the foregoing data are representative, 13 auditors are needed and 3 auditors should be transferred. Requirement 3. List some possible reasons for the variance. The variance calculated in Requirement 1 may be due to inefficiency of the auditors, improperly trained or inexperienced auditors, inaccuracy of the cost measures, a batch of unusually complex returns, or a combination of all these factors, Requirement 4. Describe some alternative cost drivers for processing income tax returns. Besides number of returns, alternative cost drivers might include: O A. Amount of taxes shown on returns filed. B. Number of individual forms included in filed returns. O C. Number of pages of returns processed. D. All of the above