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Wetherbee Tech Services ( WTS ) is a chain of computer maintenance technicians for households and small businesses. The following data are available for last

Wetherbee Tech Services (WTS) is a chain of computer maintenance technicians for households and small
businesses. The following data are available for last year's services:
WTS recorded 121,200 tech calls last year. It had budgeted 127,400 calls, averaging 90 minutes each.
Standard variable labor and support costs per tech call were as follows:
Direct IT specialist services: 90 minutes at $54 per hour
Variable support staff, supplies, and overhead: 30 minutes at $24 per hour
Fixed overhead costs:
Annual budget $4,142,400
Fixed overhead is applied at the rate of $36.00 per call.
Actual tech service call costs:hour $ 9,502,080
Variable support staff, supplies, and overhead: averaging 40 minutes per call at
$22.50 per hour x 121,200 calls
Fixed overhead
1,818,000
4,438,000Required:
a. Prepare a cost variance analysis for each variable cost for last year.
b. Prepare a fixed overhead cost variance analysis.
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Prepare a cost variance analysis for each variable cost for last year.
Note: Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, or "U"
unfavorable. If there is no effect, do not select either option. Wetherbee Tech Services (WTS) is a chain of computer maintenance technicians for households and small
businesses. The following data are available for last year's services:
WTS recorded 121,200 tech calls last year. It had budgeted 127,400 calls, averaging 90 minutes each.
Standard variable labor and support costs per tech call were as follows:
Direct IT specialist services: 90 minutes at $54 per hour
Variable support staff, supplies, and overhead: 30 minutes at $24 per hour
Fixed overhead costs:
Annual budget $4,142,400
Fixed overhead is applied at the rate of $36.00 per call.
Actual tech service call costs:hour $ 9,502,080
Variable support staff, supplies, and overhead: averaging 40 minutes per call at
$22.50 per hour x 121,200 calls
1,818,000
Fixed overhead
4,438,000Required:
a. Prepare a cost variance analysis for each variable cost for last year.
b. Prepare a fixed overhead cost variance analysis.
Answer is complete but not entirely correct.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Prepare a fixed overhead cost variance analysis.
Note: Indicate the effect of each variance by selecting "F" for favorable, or "U" for unfavorable. If there is no effect,
select either option.
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