Exercise 16-44 Comprehensive Cost Variance Analysis (LO 16-5, 6)

NSF Lube is a fast-growing chain of oil-change stores. The following data are available for last years services:

NSF Lube performed 467,700 oil changes last year. It had budgeted 435,000 oil changes, averaging 8 minutes each.

Standard variable labor and support costs per oil change were as follows:

Direct oil specialist services: 8 minutes at $30 per hour $ 4.00

Variable support staff and overhead: 10.5 minutes at $20 per hour 3.5

Fixed overhead costs: Annual budget $1,039,000

Fixed overhead is applied at the rate of $3.90 per oil change.

Actual oil change costs:

Direct oil specialist services: 467,700 changes averaging 11 minutes at $34 per hour $ 2,915,330

Variable support staff and overhead: 0.22 labor-hours at $15 per hour 467,700 changes 1,543,410

Fixed overhead 1,425,000

a. Prepare a cost variance analysis for each variable cost for last year.

b. Prepare a fixed overhead cost variance analysis

I know the answer for b is:

Price Variance: $386,000 U

Production Volume Variance: $785,030 F

Fixed Overhead Cost Variance: $399,030 F

......But I can't figure out A: how to get the Price Variance, Efficiency Variance or the total variance for both the oil specialist and the variable overhead.

Any help would be appreciated.