AUDITING & ASSURANCE SERV.>CUSTOM<W/AC
AUDITING & ASSURANCE SERV.>CUSTOM<W/AC
8th Edition
ISBN: 9781266045905
Author: LOUWERS
Publisher: MCG CUSTOM
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Chapter 4, Problem 41MCQ
To determine

State the primary reason for auditors to procure a better understanding of the nature of the act when the auditor is aware of noncompliance committed by client personnel.

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The following labor standards have been established for a different product: Standard labor hours per unit = 1.8 hours Standard labor rate = $13.75 per hour The following data pertain to operations concerning the product for the last month: • Actual hours worked = 3,900 hours . Actual total labor cost = $54,600 Actual output = 2,100 units Compute the labor rate variance for the month.
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