The Dudley Travel Agency has found that, on average, its travel agents take 1.5 hours to serve
Question:
The following table contains the labor data for the Dudley Travel Agency for 2012:
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 eachvariance?
Transcribed Image Text:
Estimated (expected) Actual Number of clients served Travel agent hours Travel agent wages Fixed overhead Variable overhead 5,000 7,500 $187,500 $85,000 4,800 7,800 $179,400 $86,000 $20 per travel agent hour $21 per travel agent hour
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a Labor rate variance AR SR AH 23 25 7800 15600 favorable Actual rate 179400 7800 23 Labor efficienc...View the full answer
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