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(DL variances) Calista & Lane, CPAs, set the following standard for its inventory audit of Triumph Co.: 350 hours at an average hourly billing rate of $250. Th e fi rm actually worked 330 hours during the inventory audit process. Th e total labor variance for the audit was $3,500 unfavorable. a. Compute the total actual payroll. b. Compute the labor efficiency variance. c. Compute the labor rate variance. d. Prepare the entry to assign labor costs to inventory, record the labor variances, and accrue payroll costs. e. Write a memo to the appropriate personnel regarding feedback about the labor effi ciency variance. Th e memo should also off er a brief explanation that is consistent with the labor rate and effi ciency variances.
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