Question
Palladium Inc. produces a variety of household cleaning products. Palladiums controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed
Palladium Inc. produces a variety of household cleaning products. Palladiums controller has developed standard costs for the following four overhead items:
Overhead Item | Total Fixed Cost | Variable Rate per Direct Labor Hour |
Maintenance | $ 86,000 | $0.20 |
Power | 0.45 | |
Indirect labor | 140,000 | 2.10 |
Rent | 35,000 |
Assume that actual production required 93,000 direct labor hours at standard. The actual overhead costs incurred were as follows:
Maintenance | $107,000 |
Power | 41,200 |
Indirect labor | 336,000 |
Rent | 35,000 |
Required:
Prepare a performance report for the period based on actual production. 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. If an amount is zero, enter "0" and choose "Not applicable" from the dropdown list.
Performance Report | ||||
Actual | Budgeted | Variance | ||
Direct labor hours based on actual | FavorableUnfavorableNot applicable | |||
Overhead: | ||||
Maintenance | FavorableUnfavorableNot applicable | |||
Power | FavorableUnfavorableNot applicable | |||
Indirect labor | FavorableUnfavorableNot applicable | |||
Rent | FavorableUnfavorableNot applicable | |||
Total overhead | FavorableUnfavorableNot applicable |
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