Ionia Inc. produces a variety of shampoos, conditioners, and hair care products. Ionia’s controller has developed standard costs for the following four overhead items:

Next year, Ionia expects production to require 140,000 direct labor hours.

Performance Report Based on Actual Production

Refer to the information for Ionia Inc. above. Assume that Ionia’s actual production required 142,000 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.
 
 

Transcribed Image Text:

Overhead Item Maintenance Power Indirect labor Rent Total Fixed Cost $173,000 128,000 30,000 Variable Rate per Direct Labor Hour $0.20 0.45 2.10 Overhead Item Maintenance Power Indirect labor Rent Total Fixed Cost $173,000 128,000 30,000 Variable Rate per Direct Labor Hour $0.20 0.45 2.10

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