The cheque clearing office of Pay Loans Company is responsible for processing all cheques that come to the company for payment Managers at the company believe that variable overhead costs are essentially proportional to the number of labour-hours worked in the office, co labour-hours are used as the activity base when preparing vartable overhead budgets and performance reports. Data for October, the most recent month, appear below. 1,440 1.440 Budgeted labour hours Actual Labour-hours Standard labour-hours allowed for the actual manber of cheques processed 1,450 Actual Cost Formula Costs (per labour incurred in hour) October Variable overhead costs Office Supplies Start coffee lounge Indirect labour 5 0.30 0.30 1.30 350 452 3,600 Total variable overhead cost $ 3.90 $ 4,402 Fixed overhead at Pay Loans Company constits entirely of supervisory calories and is applied at a rate of $5 per direct labour-hour Actual fixed overhead costs totalled $6.300 in October while the floxible budget was $5,000 for the month, Required Prepare an overhead performance report for October for the cheque-clearing office that includes both spending and efficiency vartances for variable overhead and the budget variance for fixed overhead. (Indicate the effect of each vantance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect is zero variancel. Fixed overhead at Pay Loans Company consists entirely of supervisory salaries and is applied at a rate of $5 per direct labour-hour, Actual fixed overhead costs totalled $5,300 in October, while the flexible budget was $5,000 for the month 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 varlance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect le, zero vartance) PAY LOANS COMPANY Overhead Performance Report For the Month Ended October 31 Breakdown of the Total Variance Overhead costs Cost Actual Costs Flexible Flexible Formula Incurred for Budget Based Budget Based (per labour 1,340 Labour on 1,340 on 1460 hout) Hours Labour Hours Labour Hours Total Variance Spending (Budget Efficiency Variance Variance 5 0.30 3 0.30 3.30 Variable overhead costs Office supplies Staff coffee lounge Indirect labour Total variable overhead cost Fored overhead costs Supervisory salaries Total overhead post 350 452 3,000 4,402 $ 3.00 $ 5,300 0,702 $