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 $120,900$ tech calls last year. It had budgeted $126,800$ calls, averaging $90$ minutes each.

Standard variable labor and support costs per tech call were as follows:

Direct IT specialist services: $90$ minutes at $$54$ per hour $$81$

Variable support staff, supplies, and overhead: $30$ minutes at $$24$ per hour $12$

Fixed overhead costs:

Annual budget $$4,141,800$

Fixed overhead is applied at the rate of $$36\mathrm{.}00$ per call.

Actual tech service call costs:

Direct IT specialist services: $120,900$ calls averaging $84$ minutes at $$56\mathrm{.}00$ per hour $ $9,478,560$

Variable support staff, supplies, and overhead: averaging $40$ minutes per call at $$22\mathrm{.}50$ per hour $\backslash$times $120,900$ calls $1,813,500$

Fixed overhead $4,423,000$

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 $120,900$ tech calls last year. It had budgeted $126,800$ calls, averaging $90$ minutes each.

Standard variable labor and support costs per tech call were as follows:Variable support staff, supplies, and overhead: $30$ minutes $12$

at $$24$ per hour, Fixed overhead costs:

Annual budget $$4,141,800$

Fixed overhead is applied at the rate of $$36\mathrm{.}00$ per call.

Actual tech service call costs:$84$ minutes at $$56\mathrm{.}00$ per hour

Variable support staff, supplies, and overhead:

averaging $40$ minutes per call at $$22\mathrm{.}50$ per hour $\}$

$120,900$ calls

Fixed overhead

$9,478,560$Required:

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

BPrepare 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$"$ for 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 $120,900$ tech calls last year. It had budgeted $126,800$ calls, averaging $90$ minutes each.

$,$ Standard variable labor and support costs per tech call were as follows:Variable support staff, supplies, and overhead: $30$ minutes $12$

at $$24$ per hour, Fixed overhead costs:

Annual budget $$4,141,800$

$,$ Fixed overhead is applied at the rate of $$36\mathrm{.}00$ per call.

$,$ Actual tech service call costs:$84$ minutes at $$56\mathrm{.}00$ per hour

Variable support staff, supplies, and overhead:$120,900$ calls

Fixed overhead

$9,478,560$Required:

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 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, do not select either option.

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