Question

Performance Report Based on Actual Production Palladium Inc. produces a variety of household cleaning products. Palladium's controller has developed standard costs for the following four overhead items: Variable Rate per Direct Overhead Item Total Fixed Cost Labor Hour Maintenance $ 86,000 $0.20 Power 0.45 Indirect labor 140,000 2.10 Rent 35,000 Assume that actual production required 93,000 direct labor hours at standard. The actual overhead costs incurred were as follows: Maintenance $107,000 Power 41,200 Indirect labor 336,000 Rent 35,000 Required: Prepare a performance report for the period based on actual production. If an amount box does not require an entry, enter "o". Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount. If an amount is zero, enter "0" and choose "Not applicable from the dropdown list

Answer 1

Prepare a performance report for the period based on actual production.
	Performance Report
Particulars	Actual	Budgeted	Variance
Direct labor hours based on actual	93000	93000	0	Not applicable
Overhead :
Maintenance	107000	104600	2400	U
Power	41200	41850	650	F
Indirect Labor	336000	335300	700	U
Rent	35000	35000	0	Not applicable
Total Overhead	519200	516750	2450	U
Workinh Notes:
Budgeted maintenance cost = Fixed cost + Variable cost
=86000 + (93000*0.2)
Budgeted Indirect labor   = Fixed cost + Variable cost
= 140000 + (93000*2.10)
Budgeted Power = (93000*0.45)