Non manufacturing Cost Variance Analysis: Black Forest Auto Repairs budgets $80,000 per year for fixed costs of its auto repair shop. Shop labor is estimated to cost $ll per hour, and the estimated annual workload is 18,000 labor-hours. Materials which are not charged to customers are estimated to cost an additional $2 per labor-hour. Each labor-hour is expected to result in one hour of time charged to customers. During the past year. Black Forest spent $77,800 on fixed costs. Shop labor costs averaged $10.80 per hour for 18,700 labor-hours actually worked. A total of 18,300 hours time was charged to customers. The input price of materials was 5 percent greater than expected for the hours worked. Fixed overhead is applied based on hours charged to customers.

Required: Prepare an analysis of variances, like the ones in Illustrations 19-10 and 19-12, for Black Forest including the production volume variance.