The Dudley Travel Agency has found that, on average, its travel agents take 2 hours to serve each client and that those travel agents are paid a standard rate of $30 per hour.
The following table contains the labor data for the Dudley Travel Agency for 2018:

Required
a. Calculate the labor rate and efficiency variances.
b. Calculate the controllable overhead variance and the overhead volume variance.
c. What might have caused each variance?

Transcribed Image Text:

Estimated (expected) Actual Number of clients served |Travel agent hours Travel agent wages Fixed overhead Variable overhead 5,200 10,400 5,000 10,200 $312,000 $298,000 $75,000 $23 per travel agent hour $22 per travel agent hour