Variable Rate per

Overhead Item

Total Fixed Cost

Direct Labour Hour

Maintenance

$$86,000$

$$0\mathrm{.}20$

Power

$0\mathrm{.}45$

Indirect labour

Rent

$140,000$

$2\mathrm{.}10$

$35,000$

Next year, Hajiey expects production to require $90,000$ direct labour hours.

Assume that actual production required $98,000$ direct labour hours at standard. The actual overhead costs incurred were as follows:

Maintenance

Indirect labour

Power

Rent

$$81,000$

$336,000$

$41,200$

$44,000$

Required:

Prepare a performance report for the period based on actual production. In the variance type column, type $"$F$"$ for favourable and $"$U$"$ for unfavourable. 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.$)$

Hajiey Inc.

Performance Report