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

• NSF Lube performed 475,200 oil changes last year. It had budgeted 432,000 oil changes, averaging 10 minutes each.
• Standard variable labor and support costs per oil change were as follows.

Direct oil specialist services: 10 minutes at $24 per hour	$	4
Variable support staff and overhead: 7.5 minutes at $16 per hour		2

• Fixed overhead costs:

Annual budget $1,036,000

• Fixed overhead is applied at the rate of $2.40 per oil change.
• Actual oil change costs:

Direct oil specialist services: 475,200 changes averaging 12 minutes at $26.00 per hour	$	2,471,040
Variable support staff and overhead: 0.14 labor-hours at $15.00 per hour 475,200 changes		997,920
Fixed overhead		1,200,000

Required:

a. Prepare a cost variance analysis for each variable cost for last year. b. Prepare a fixed overhead cost variance analysis.