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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 years services:WTS recorded 121,100 tech calls last year. It had budgeted 127,200 calls, averaging 90 minutes each.Standard variable labor and support costs per tech call were as follows:Fixed overhead costs:Annual budget $4,142,200Fixed overhead is applied at the rate of $36.00 per call.Actual tech service call costs:Required:a.Prepare a cost variance analysis for each variable cost for last year.
b.Prepare a fixed overhead cost variance analysis.
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 120,000 tech calls last year. It had budgeted 125,000 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
$81
12
Fixed overhead costs:
Annual budget $4,140,000
Fixed overhead is applied at the rate of $36 per call.
Actual tech service call costs:
Direct IT specialist services: 120,000 calls averaging 84 minutes at $56.00 per hour
Variable support staff, supplies, and overhead: averaging 40 minutes per call at $22.50 per hour x120,000 calls
$9,408,000
1,800,000
4,378,000
Fixed overhead
Required:
a. Prepare a cost variance analysis for each variable cost for last year.
b. Prepare a fixed overhead cost variance analysis.
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