variable overhead budgets and performance reports. Data for October, the most recent month, appear below: 1,340 1,290 Budgeted labour-hours Actual labour-hours Standard labour-hours allowed for the actual number of cheques processed 1,360 Cost Formula Actual Costs (per labour Incurred in hour) October Variable overhead costs: Office supplies $ 0.70 Staff coffee lounge 0.20 318 Indirect labour 2.30 4,000 $ 85% Total variable overhead cost $3.20 $ 5,168 Fixed overhead at Pay Loans Company consists entirely of supervisory salaries and is applied at a rate of $6 per direct labour-hour. Actual fixed overhead costs totalled $6,240 in October, while the flexible budget was $6,000 for the month. Required: Fixed overhead at Pay Loans Company consists entirely of supervisory salaries and is applied at a rate of $6 per direct labour-hour. Actual fixed overhead costs totalled $6,240 in October, while the flexible budget was $6,000 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 variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (ie, zero variance).) PAY LOANS COMPANY Overhead Performance Report For the Month Ended October 31 Breakdown of the Total Variance Spending (Budget) Variance Efficiency Variance Cost Actual Costs Flexible Flexible Overhead costs Formula Incurred for Budget Based Budget Based Total Variance (per labour 1,290 Labour on 1.290 on 1,360 hour) Hours Labour Hours Labour Hours Variable overhead costs: Office supplies $ 0.70 $ 850 Staff coffee lounge 020 318 Indirect labour 230 4.000 Total variable overhead cost $ 3.20 $ 5,168 Fixed overhead costs Supervisory salaries 6.240 Total overhead cost $ 11.408