PERFORMANCE REPORT FOR VARIABLE VARIANCES A company provided the following information:

Standard variable overhead rate (SVOR) per direct labor hour $4.50 Actual variable overhead costs:

Inspection $66,722 Power $96,450 Actual direct labor hours worked (AH) 36,100 Actual production in units 12,000 Standard hours allowed for actual units produced (SH) 36,000 Variable overhead:

Inspection 3 hours @ $1.80 Power 3 hours @ $2.70 Required:

Prepare a performance report that shows the variances for each variable overhead item

(inspection and power).

Cornerstone Exercise