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Wetherbee Tech Services (WTS) is a chain of computer maintenance technicians for households and small...

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Accounting

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 120,500 tech calls last year. It had budgeted 126,000 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$81Variable support staff, supplies, and overhead: 30 minutes at $24 per hour12
Fixed overhead costs:
Annual budget $4,141,000
Fixed overhead is applied at the rate of $36.00 per call.
Actual tech service call costs:
Direct IT specialist services: 120,500 calls averaging 84 minutes at $56.00 per hour$ 9,447,200Variable support staff, supplies, and overhead: averaging 40 minutes per call at $22.50 per hour 120,500 calls1,807,500Fixed overhead4,403,000
Required:
Prepare a cost variance analysis for each variable cost for last year.
Prepare a fixed overhead cost variance analysis.

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