ACP AUDITING - RISK BASED APPROACH
ACP AUDITING - RISK BASED APPROACH
10th Edition
ISBN: 9780357195079
Author: JOHNSTONE
Publisher: CENGAGE C
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Chapter 8, Problem 49RSCQ
To determine

Introduction: Sample size is the basic unit of the audit and it is the collection of the samples.

Requirement 1

Determine the sample size.

To determine

Introduction: For selecting the samples from population, auditor should follow some haphazard technique for selection.

Requirement 2

Selection of sample.

To determine

Introduction: The misstatement is an error in account transactions and it is used to evaluate the sample results.

Requirement 3

Determine the sample results.

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A company produced 2,200 units of output during a production process that normally requires 2 hours of labor per unit of output. The standard labor rate is $16 per hour, but the company paid $15 per hour. Actual hours needed to complete the production process were 4,600. How much was the labor efficiency variance? A. $3,000 favorable. B. $3,000 unfavorable. C. $3,200 favorable. D. $3,200 unfavorable.
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