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NSF Lube is a fast-growing chain of oil-change stores. The following data are available for last years services. NSF Lube peRequired: a. Prepare a cost variance analysis for each variable cost for last year. b. Prepare a fixed overhead cost varianceRequired: a. Prepare a cost variance analysis for each variable cost for last year. b. Prepare a fixed overhead cost variance

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Answer #1
Particular Price Variance F/U Efficiency variance F/U Total variance F/U
Oil Specialist $ 491,610 U $ 1,615,290.00 U $ 2,106,900.00 U
Variable overhead $ 98,322 F $ 79,594 U $ 18,728 F
Fixed overhead cost variance
Particular Amount F/U
Price Variance $ 371,200 U
Production volume variance $ 84,880 F
Fixed Overhead cost variance $ 286,320 U
Particular Price Variance F/U Efficiency variance F/U Total variance F/U
Oil Specialist =(26-23)*(468200*21/60) U =-((468200*12/60)-(468200*21/60))*23 U =C3+E3 U
Variable overhead =-(16-17)*468200*(0.21*60)/60 F =((468200*(0.21*60)/60)-(468200*12/60))*17 U =C4-E4 F
Fixed overhead cost variance
Particular Amount F/U
Price Variance =-(1038800-1410000) U
Production volume variance =(2.4*468200)-1038800 F
Fixed Overhead cost variance =-((2.4*468200)-1410000) U
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