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

• NSF Lube performed 472,200 oil changes last year. It had budgeted 433,200 oil changes, averaging 12 minutes each.
• Standard variable labor and support costs per oil change were as follows.

Direct oil specialist services: 12 minutes at $23 per hour	$	4.60
Variable support staff and overhead: 6.0 minutes at $20 per hour		2.00

• Fixed overhead costs:

Annual budget $1,037,200

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

Direct oil specialist services: 472,200 changes averaging 19 minutes at $26 per hour	$	3,887,780
Variable support staff and overhead: 0.16 labor-hours at $15 per hour 472,200 changes		1,133,280
Fixed overhead		1,290,000

Required:

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

	Price Variance		Efficiency Variance		Total Variance
Oil specialist
Variable overhead

b. Prepare a fixed overhead cost variance analysis.

Prepare a fixed overhead cost variance analysis. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect.)

Price variance
Production volume variance
Fixed overhead cost variance