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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 Direct
Labor 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)