Ingles Company manufactures external hard drives. At the beginning of the period, the following plans for production and costs were revealed:

Required:
1. Prepare a performance report comparing expected costs to actual costs.
2. Determine the following:
Direct materials usage variance.
Direct labor rate variance.
Direct labor usage variance.
Fixed overhead spending and volume variances.
geen aV ariable overhead spending and efficiency variances.
3. Use T-accounts to show the flow of costs through the system. In showing the flow, you do not need to show detailed overhead variances. Show only the over- and underapplied variances for fixed and variable overhead.LO1

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Units to be produced and sold Standard cost per unit: Direct materials Direct labor Variable overhead Fixed overhead Total unit cost 25,000 $10 8 4 3 $25 During the year, 24,800 units were produced and sold. The following actual costs were incurred: Direct materials Direct labor $264,368 204,352 Variable overhead 107,310 73,904 Fixed overhead There were no beginning or ending inventories of direct materials. The direct mate- rials price variance was $10,168 unfavorable. In producing the 24,800 units, a total of 12,772 hours were worked, 3 percent more hours than the standard allowed for the actual output. Overhead costs are applied to production using direct labor hours.