Phan Company provided the following information:

Required:
Prepare a performance report that shows the variances for each variable overhead item (inspection and power).

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Standard variable overhead rate (SVOR) per direct labour hour Actual variable overhead costs: $3.70 Inspection Power $112,300 $94,516 56,200 14,000 Actual direct labour hours worked (AH) production in units Standard hours allowed for actual units produced (SH) Variable overhead: 56,000 4 hours @ $2.00 4 hours @ S1.70 Inspection Power