NSF Lube is a fast-growing chain of oil-change stores. The following data are available for last year's services.• NSF Lube performed 469,200 oil changes last year. It had budgeted 434,400 oil changes, averaging 12 minutes each.• Standard variable labor and support costs per oil change were as follows.Direct oil specialist services: 12 minutes at $25 per hourVariable support staff and overhead: 10.5 minutes at $20 per hour$5.003.50Fixed overhead costs:Annual budget $1,038,400• Fixed overhead is applied at the rate of $2.40 per oll change.• Actual oil change costs:Direct ofl specialist services: 469, 200 changes averaging 19 minutes at $28 per hourVariable support staff and overhead: 0.19 labor-hours at $18 per hour x 469, 200 changesFixed overhead$4,160, 2401,604,6641,380,000Required:a. Prepare a cost variance analysis for each variable cost for last year.b. Prepare a fixed overhead cost variance analysis.

Cost Variance- Cost variance is the procedure of evaluating the fiscal performance of your task.…

NSF Lube is a fast-growing chain of oil-change stores. The following data are available for last year's services. - NSF Lube performed 469,200 oil changes last year. It had budgeted 434,400 ol changes, averaging 12 minutes each. - Standard variable labor and support costs per oil change were as follows. Direct oil specialist services: 12 minutes at $25 per hour Variable support staff and overhead: 10.5 minutes at $20 per hour $5.00 3.50 Fixed overhead costs:

NSF Lube is a fast-growing chain of oil-change stores. The following data are available for last year's services. - NSF Lube performed 469,200 oil changes last year. It had budgeted 434,400 ol changes, averaging 12 minutes each. - Standard variable labor and support costs per oil change were as follows. Direct oil specialist services: 12 minutes at $25 per hour Variable support staff and overhead: 10.5 minutes at $20 per hour $5.00 3.50 Fixed overhead costs:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject: Acounting