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# Super IT bid and won a job from the City to upgrade the Iowa's Department's financial system. What is the price, mix, and yield variance for total professional labor on this consulting job?

Super IT bid and won a job from the City to upgrade the Iowa's Department's financial system. The terms of the bid, which become the flexible budget, are as follows: 1,500 hours of partner time at a cost of \$300 per hour and 2,750 hours of systems analyst time at a cost of \$150 per hour. The job is completed and the Super IT accounting system reports that partner time actually spent on the Iowa's Department job was 1,750 hours at a cost of \$280 per hour, and systems analyst time actually spent on the Iowa Department job was 2,600 hours at a cost of \$145 per hour. Partners and the analysts had to substitute for each other during the course of the job. What is the price, mix, and yield variance for total professional labor on this consulting job?

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Ans.

Given:
Budgeted:
Part time: 1500 hrs @ \$300 P.H.
System analyze: 2750hrs. @ \$ 150P.H.
Actuals:
Part time: 1750hrs. @ \$ 280P.H.
System Analyze: 2600 hrs @ \$ 145P.H.
Here
L1= Actual hrs. * Actual rate
L2= Actual hrs * Standard rate
L3= Actual hrs in standard ratio * standard rate
L4= Standard cost of actual output
L1:
Partner time 1750*280 = 490000
System ...

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\$2.19