Performance Report for Variable Variances

Smokey Company provided the following information:

Standard variable overhead rate (SVOR) per direct labor hour		$3.50
Actual variable overhead costs:
	Inspection	$112,400
	Power	$95,700
Actual direct labor hours worked (AH)		56,000
Actual production in units		15,000
Standard hours allowed for actual units produced (SH)		55,000
VOH:
	Inspection	2 hours @ $1.70
	Power	5 hours @ $1.60

Required:

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Complete a performance report that shows the variances for each variable overhead item (inspection and power). In the variance type column, type "F" for favorable and "U" for unfavorable. 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.)

Smokey Company

Performance Report for Variable Variances

Overhead Cost Item

Cost Formula

Actual Cost

Budget for Actual Hours

Budget for Spending Variance

F or U or N

Budget for At Standard Hours

Budget for Efficiency Variance

F or U or N

Inspection

$

$

$

$

$

$

Power

Total

$

$

$

$

$

$