erformance Report for Variable Variances

Potter Company provided the following information:

Standard variable overhead rate (SVOR) per direct labor hour		$5.00
Actual variable overhead costs:
Inspection		$162,000
Power		$220,600
Actual direct labor hours worked (AH)		77,000
Actual production in units		25,000
Standard hours (SH) allowed for actual units produced		75,000

VOH:

Inspection		3 hours @ $2.00
Power		3 hours @ $3.00

Required:

Prepare a performance report that shows the variances for each variable overhead item (inspection and power). If an amount box does not require an entry, enter "0". Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount.

Cost Formula

Actual Cost

Budget for Actual Hours

Spending Variance

Budget for Standard Hours

Efficiency Variance

Inspection

$

$

$

$

$

$

Power

$

$

$

$

$

$

Total

$

$

$

$

$

$