Smokey Company provided the following information:

Standard variable overhead rate (SVOR) per direct labor hour	$3.70
Actual variable overhead costs:
Inspection	$112,300
Power	$95,600
Actual direct labor hours worked (AH)	56,200
Actual production in units	14,000
Standard hours (SH) allowed for actual units produced	56,000
VOH:
Inspection	4 hours @ $2.00
Power	4 hours @ $1.70

	Required:
	Prepare a performance report that shows the variances for each variable overhead item (inspection and power).

Prepare a performance report that shows the variances for each variable overhead item (inspection and power). (Note: Enter both Actual and Budgeted amounts aspositive amounts. The variance amounts can be entered as a positive or a negative. In the variance type column (Variance), type "F" for favorable and "U" for unfavorable. If there is no variance enter "N" for neither in the variance type column.)

Smokey Company

Performance Report for Variable Variances

1	Overhead Cost Item	Cost Formula	Actual Cost	Budget for Actual Hours	Budget for Spending Variance	Variance (U, F or N)	Budget @ Standard Hours	Budget for Efficiency Variance	Variance (U, F or N)
2	Inspection
3	Power
4	Total