Performance Report for Variable Overhead Variances

Anker Company had the data below for its most recent year, ended December 31:

Actual costs:					Variable overhead standards:
Indirect labor		$36,000			Indirect labor		0.15 hr. @ $24.00
Supplies		$3,800			Supplies		0.15 hr. @ $2.40
Actual hours worked		1,490	hours		Standard variable overhead rate		$26.40 per direct labor hour
Units produced		10,000	units
Hours allowed for production		1,500	hours

Required:

Prepare a performance report that shows the variances on an item-by-item basis. Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount.

Anker Company
Performance Report
For the Year Ended December 31
Cost	Cost Formula	Actual Cost	Budget for Actual Hours	Budget for Spending Variance	Favorable/ Unfavorable	Budget for Standard Hours	Budget for Efficiency Variance	Favorable/ Unfavorable
Indirect labor	$	$	$	$		$	$
Supplies
Total	$	$	$	$		$	$