Hello. Thanks for your help I got the first one but need the rest please (a) b C
ID: 2472321 • Letter: H
Question
Hello. Thanks for your help I got the first one but need the rest please
(a)
b Calculate the labor rate and labor efficiency variances for attorneys preparing wills.
c Calculate the labor rate and labor efficiency variances for paralegals assisting with business incorporations.
d Calculate the labor rate and labor efficiency variances for paralegals assisting with wills.
Hello. Thanks for your help I got the first one but need the rest please
Selzer & Hollinger, a low-cost legal firm, has set time standards for each of the two basic legal services it offers, which include the following:Attorney Time Paralegal Business incorporation 2.5 hours @ $110 per hour 4 hours @ $37 per hour Will preparation 1.5 hour @ $179 per hour 3 hours @ $30 per hour
Over the past month, Selzer & Hollinger has handled 34 business incorporations and 28 wills. Actual hours and costs follow:
Costs of Attorneys Costs of Paralegals Business incorporation 94 hours @ $139 average
attorney cost per hour 135 hours @ $36 average
paralegal cost per hour Will preparation 40 hours @ $181 average
attorney cost per hour 91 hours @ $30 average
paralegal cost per hour
Explanation / Answer
Labour rate variance for will preparation-Cost of attotneys:
Actual hours worked*(standard rate- acutal rate).
Acutal hours=40 hours.
Actual cost per hour=$181
Standard labour rate per hour =$179
Substituting the values in the formula = 40*(179-181).
=-2*40
=80 (U).
Labour Efficiency variance for will preparation-Cost of attotneys:
Acutal hours =40 hours
Standard hours =28 wills *1.5 hour. =42 hours.
Standard rate per hour=$179.
Formula for labour efficiency = standard rate per hour*(standard hours- Actual hours)
=$179*(42-40)
=$179*2
=$358.(F)
Labour rate variance for Business incorporations-cost of para legals:
Actual hours worked*(standard rate- acutal rate).
Acutal hours=135 hours.
Actual cost per hour=$36
Standard labour rate per hour =$37
Substituting the values in the formula = 135*(37-36).
=$135(F)
Labour Efficiency variance for Business incorporation-Para legal:
Acutal hours =135 hours
Standard hours =34 *4 hour. =136 hours.
Standard rate per hour=$37
Formula for labour efficiency = standard rate per hour*(standard hours- Actual hours)
=$37*(136-135)
=$37(F).
Labour rate variance for Will preparation-Para legal:
Actual hours worked*(standard rate- acutal rate).
Acutal hours=91 hours.
Actual cost per hour=$30
Standard labour rate per hour =$30
Substituting the values in the formula = 91*(30-30).
=No variance.
Labour Efficiency variance for Will preparation-Para legal:
Acutal hours =91 hours
Standard hours =28 *3 hour. =84 hours.
Standard rate per hour=$30
Formula for labour efficiency = standard rate per hour*(standard hours- Actual hours)
=$30*(84-91)
=$30*-7
=$210(U)
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