The Dudley Travel Agency has found that, on average, its travel agents take 1.5 hours to serve each client and that those travel agents are paid a standard rate of $25 per hour.
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 each variance?