PERFORMANCE REPORT BASED ON ACTUAL PRODUCTION Refer to the information provided in Problem 21-43. 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:

. Calculate the number of direct labor hours budgeted for actual production of the two products.

. Prepare a performance report for the period based on actual production.

. Based on the report, would you judge any of the variances to be significant? Can you think of some possible reasons for the variances?

Problem