Performance Report Based on Actual Production Nadia Tamimi, controller for First-Aid-Care Company, has been instructed to develop a flexible budget for overhead costs. The company produces two types of bandages for hospitals: (1) Young-Ones, designed for children, and (2) Surga-Aid, designed for use on larger injuries. The two lines of bandages use common raw materials in different proportions. The company expects to produce 80,000 cartons of each product during the coming year. Young-Ones requires 0.20 direct labour hours per carton, and Surga-Aid requires 0.30 direct labour hours per carton. Nadia has developed the following fixed and variable costs for each of the four overhead items: Overhead Item Fixed Cost Variable Rate per Direct Labour Hour Maintenance $57,250 Power 0.40 $0.50 Indirect labour 2.10 43,500 39,000 Rent Assume that First-Aid-Care actually produced 100,000 cartons of Young-Ones and 90,000 cartons of Surga-Aid. The actual overhead costs incurred were as follows: Maintenance $ 81,300 Power 18,700 Indirect labour 143,600 Rent 39,000 Required: 1. Calculate the number of direct labour hours budgeted for actual production of the two products. 590,000 X direct labour hours 2. 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.) First-Aid-Care Company -- Performance Report For the Current Year Actual Budgeted Variance Variance Type (F or U or N) Units produced UX Production unit: Maintenance X $ X $ FX Power UX Indirect labour X XU Rent Total costs 1,855,000 X 5 1,815,000 X 10,000 3. Conceptual Connection: Based on the report, would you judge any of the variances to be significant? Can you think of some possible reasons for the variances? The input in the box below will not be graded, but may be reviewed and considered by your instructor