The cheque-clearing office of Pay Loans Company is responsible for processing all cheques that come to the company for payment. Managers at the company believe that variable over- head costs are essentially proportional to the number of labour-hours worked in the office, so labour-hours are used as the activity base when preparing variable overhead budgets and performance reports. Data for October, the most recent month, appear below:

Budgeted labour-hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,300

Actual labour-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,290

Standard labour-hours allowed for the

Actual number of cheques processed. . . . . . . . . . . . . . . . . . . . . . . . . . 1,320

Fixed overhead at Pay Loans Company consists entirely of supervisory salaries and is applied at a rate of $6 per direct labour-hour. Actual fixed overhead costs totalled $6,300 in October, while the flexible budget was $6,000 for the month.
Required:
Prepare an overhead performance report for October for the cheque-clearing office that includes both spending and efficiency variances for variable overhead and the budget variance for fixed overhead. Use Exhibit 10€“13 as a guide in preparing the performance report.
Exhibit 10-13

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Actual Costs Incurred in October Cost Formula (per labour-hour) Variable overhead costs: Office supplies.. Staff coffee lounge Indirect labour... Total variable overhead cost. $ 219 186 3,348 $3,753 $0.30 010 390 $430