A company provided the following information:
Standard variable overhead rate (SVOR) per direct labor hour ..... $4.50
Actual variable overhead costs:
Inspection ................................... $66,722
Power ...................................... $96,450
Actual direct labor hours worked (AH) ................... 36,100
Actual production in units ......................... 12,000
Standard hours allowed for actual units produced (SH) .......... 36,000
Variable overhead:
Inspection ............................ 3 hours @ $1.80
Power ............................... 3 hours @ $2.70
Required:
Prepare a performance report that shows the variances for each variable overhead item (inspection and power).