Refer to the information provided in Problem 11-43. Assume that Pet-Care actually produced 120,000 bags of BasicDiet and 100,000 bags of SpecialDiet. The actual overhead costs incurred were as follows:
Maintenance ....... $ 40,500
Indirect labor ...... 119,000
Power ......... 31,700
Rent ........... 18,000
Required:
1. Calculate the number of direct labor hours budgeted for actual production of the two products.
2. Prepare a performance report for the period based on actual production.
3. Based on the report, would you judge any of the variances to be significant? Can you think of some possible reasons for the variances?