The Dudley Travel Agency has found that, on average, its travel agents take two 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 2020: 

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?

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Estimated (expected) Actual Number of clients served 5,200 5,000 Travel agent hours Travel agent wages 10,400 10,200 $312,000 $298,000 Fixed overhead $75,000 $80,000 Variable overhead $22 per travel agent hour $23 per travel agent hour