Performance Report Based on Actual Production

Hajiey Inc. produces a variety of household cleaning products. Hajiey's controller has developed standard costs for the following four overhead items:

Overhead Item

Total Fixed CostVariable Rate per

Direct Labour Hour Maintenance$86,000 $0.20 Power?0.45 Indirect labour 140,000

Performance Report Based on Actual Production ? Hajiey Inc. produces a variety of household cleaning products. Hajiey's controller has developed standard costs for the following four overhead items: Variable Rate per Overhead Item Total Fixed Cost Direct Labour Hour Maintenance $ 86,000 $0.20 Power 0.45 Indirect labour 140,000 2.10 Rent 35,000 Next year, Hajiey expects production to require 90,000 direct labour hours. Assume that actual production required 110,000 direct labour hours at standard. The actual overhead costs incurred were as follows: Maintenance $88,000 Indirect labour 336,000 Power 41,200 Rent 37,000 Required: Prepare a performance report for the period based on actual production. In the variance type column, type "F" for favourable and "U" for unfavourable. If the variance is zero, enter ("0") in the variance amount column and "N" for neither in the variance type column. (Note: Be sure to use capital letters. ) Hajiey Inc. Performance Report Actual Budgeted Variance Variance Type (For U or N) Direct labour hours based on actual 90,000 110,000 20,000 Variable overhead: Maintenance 88.000Power 0.45 ? Indirect labour 140,000 2.10 Rent 35,000 lext year, Hajiey expects production to require 90,000 direct labour hours. issume that actual production required 110,000 direct labour hours at standard. The actual overhead costs incurred were as follows: Maintenance $88,000 Indirect labour 336,000 Power 41,200 Rent 37,000 Required: repare a performance report for the period based on actual production. In the variance type column, type "F" for favourable and "U" for unfavourable. If the variance is zero, enter ("0") in the variance amount column and "N for either in the variance type column. (Note: Be sure to use capital letters.) Hajiey Inc. Performance Report Actual Budgeted Variance Variance Type (F or U or N) Direct labour hours based on actual 90,000 110,000 20,000 Variable overhead: Maintenance 88,000 Power 336,000 Indirect labour 41,200 Rent 37,000 Total overhead 592,200