Comprehensive Cost Variance Analysis: Eagle Eye Optical is a fast growing chain of operations that specializes in optical care and contact lenses. The following data is available for last year's eye care exam services.

1. Eagle Eye performed 50,000 eye exams last year. Budgeted exams were 45,000 exams, averaging 50 minutes per exam.

2. Standard variable costs per exam were as follows:

3. Fixed overhead costs:

4. Fixed overhead is applied at the rate of $4 per exam.

5. Actual eye exam costs:

Required:

a. Prepare a cost variance analysis for last year like the one in Illustration 19-10.

b. Prepare a fixed overhead cost variance analysis like the one in Illustration 19-12.

Direct optometrist services: 50 minutes at $30.00 per hour Variable support staff and overhead: 1.1 labor-hours at $15.00 per hour $25.00 16.50