Smokey Company provided the following information:
Standard variable overhead rate (SVOR) per direct labor hour ...........$ 3.70
Actual variable overhead costs:
Inspection ............................$ 112,300
Power ..............................$ 95,600
Actual direct labor hours worked (AH) .................56,200
Actual production in units.......................14,000
Standard hours ( SH) allowed for actual units produced...........56,000
VOH:
Inspection 4 hours @ .......................$ 2.00
Power 4 hours @ ..........................$ 1.70
Required:
Prepare a performance report that shows the variances for each variable overhead item (inspection and power).