In computed tomography (CT), the fan-beam filtered backprojection (FFBP) algorithm is used widely for image reconstruction. It is known that the FFBP algorithm can significantly amplify data noise and aliasing artifacts in situations where the focal lengths are comparable to or smaller than the size of the field of measurement (FOM). In this work, we propose an algorithm that is less susceptible to data noise, aliasing, and other data inconsistencies than is the FFBP algorithm while retaining the favorable resolution properties of the FFBP algorithm. In an attempt to evaluate the noise properties in reconstructed images, we derive analytic expressions for image variances obtained by use of the FFBP algorithm and the proposed algorithm. Computer simulation studies are conducted for quantitative evaluation of the spatial resolution and noise properties of images reconstructed by use of the algorithms. Numerical results of these studies confirm the favorable spatial resolution and noise properties of the proposed algorithm and verify the validity of the theoretically predicted image variances. The proposed algorithm and the derived analytic expressions for image variances can have practical implications for both estimation and detection/classification tasks making use of CT images, and they can readily be generalized to other fan-beam geometries.