13. Factory overhead variances. Storm Company uses budgeting in its planning and controlling system. In recent months, line supervisors were very glad with the reports on their performance while top management expressed dissatisfaction over the reports prepared. A typical overhead performance report for a recent budget period is shown below: Storm Company Overhead Performance Report - Dye Division For the month ended, March 31 Actual Budget Variance Machine hours 25,000 30,000 Variable overhead: Indirect labor P 21,000 P 22,500 P ( 1,500) F Supplies 5,600 6,000 400) F Utilities 29,000 30,000 1,000) F Setup time 14.000 15,000 1,000) F Total variable costs 69,600 73,500 3,900) F Fixed overhead: Maintenance 62,000 60,000 2,000 U Inspection 80,000 80,000 0 -- Total fixed costs 142,000 140,000 2.000 U Total overhead costs P 211,600 P 213,500 P ( 1,900) F Two direct labor hours are needed to complete a product. The company produced 12,000 units during the month. Required: 1. Redo the overhead performance report by comparing the actual costs with the standard costs. Indicate your variances as favorable (F) or unfavorable (U). 2. Compute the variable overhead rate per hour