Required. Prepare an overhead performance report for October for the cheque-clearing office that includes both spending and efficiency variances for variable overhead and the budget variance for fixed overhead. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) PAY LOANS COMPANY Overhead Performance Report For the Month Ended October 31 Breakdown of the Total Variance Cost Actual Costs Flexible Flexible Overhead costs Formula Incurred for Budget Based Budget Based Spending (Budget) (per labour- 1,325 Labour- on 1,325 on 1,430 Total Variance Variance Efficiency Variance hour) Hours Labour-Hours Labour-Hours Variable overhead costs: Office supplies $ 1.40 $ 1,790 Staff coffee lounge 0.4 600 Indirect labour 3.00 2,700 $ 4.80 $ 5,090 + Total variable overhead cost Fixed overhead costs: Supervisory salaries 7,240 $ 12,330 Total overhead cost as tv AUG 3 MacBook ProFrank Weston, supervisor of the Freemont Corporation's Machining Department, was visibly upset after being reprimanded for his department's poor performance over the prior month. The department's cost control report is given below: FREEMONT CORPORATION-MACHINING DEPARTMENT Cost Control Report For the Month Ended June 30 Static Budget Actual Static Budget Variance Machine-hours 37 , 800 33, 800 Direct labour wages $ 87 , 100 $ 78, 500 $ 8, 600 U Supplies 24 , 500 19, 800 4, 700 U Maintenance 124, 000 125, 000 -1, 000 U Utilities 17 , 200 14 , 900 2 , 300 U Supervision 38 , 100 38 , 100 Depreciation 80, 600 80, 600 Total $371 , 500 $356, 900 $ 14 , 600 U "I just can't understand all of these unfavourable variances," Weston complained to the supervisor of another department. "When the boss called me in, I thought he was going to give me a pat on the back because I know for a fact that my department worked more efficiently last month than it has ever worked before. Instead, he tore me apart. I thought for a minute that it might be over the supplies that were stolen out of our warehouse last month. But they amounted to only a couple of hundred dollars, and just look at this report. Everything is unfavourable." Direct labour wages and supplies are variable costs; supervision and depreciation are fixed costs; and maintenance and utilities are mixed costs. The fixed component of the budgeted maintenance cost is $99,000; the fixed component of the budgeted utilities cost is $11,200. Required: 1. This part of the question is not part of your Connect assignment. in them atv A AUG 3