Palladium Inc. produces a variety of household cleaning products. Palladium’s co
ID: 2527520 • Letter: P
Question
Palladium Inc. produces a variety of household cleaning products. Palladium’s controller has developed standard costs for the following four overhead items:
Assume that actual production required 93,000 direct labor hours at standard. The actual overhead costs incurred were as follows:
Required:
Prepare a performance report for the period based on actual production. If an amount box does not require an entry, enter "0". 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.
Overhead Item Total Fixed Cost Variable Rate per DirectLabor Hour Maintenance $ 86,000 $0.20 Power 0.45 Indirect labor 140,000 2.10 Rent 35,000
Explanation / Answer
Performance Report Actual Budgeted Variance Direct Labor Hours Based on actual 93,000.00 93,000.00 Maintenance 107,000.00 104,600.00 2,400.00 (U) Power 41,200.00 41,850.00 650.00 (F) Indirect Labor 336,000.00 335,300.00 700.00 (U) Rent 35,000.00 35,000.00 - Total Overhead 519,200.00 516,750.00 2,450.00 (U)
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