Question 2 Pyramid Consultants, a financial consulting firm, has three levels of professional staff: partners, seniors and trainees. The partners manage all aspects of the consulting job. Seniors are responsible for carrying out the main consultancy work with the support of Trainee consultants whom they supervise. They are currently trying out a flexible, 4-working days a week scheme with the aim of increasing staff productivity. Budgeted costs for five consulting jobs done over a recent period are as follows: 300 Partner-hours at 95 per hour 28,500 900 Senior-hours at 60 per hour 54,000 1,800 Trainee-hours at 25 per hour 45,000 127,500 Actual hours worked and the actual rates per hour to complete the five jobs were: Required: 224 928 2,048 Partner-hours at a total cost of Senior-hours at a total cost of Trainee-hours at a total cost of 21,280 59,392 57,344 138,016 a) Calculate the total labour rate and efficiency variances for the five jobs. b) Calculate the total labour mix and yield variances for the month. c) Based on the variances that you have calculated in a) and b), comment on the firm's decision to introduce the flexible, 4-working days a week scheme.