Next year, Palladium expects production to require 90,000 direct labor hours.
Assume that actual production required 93,000 direct labor hours at standard. The actual overhead costs incurred were as follows:
Prepare a performance report for the period based on actual production. In the variance type column, type “F” for favorable and “U” for unfavorable. If the variance is zero, enter (“0”) in the variance amount column and “N” for neither in the variance type column. (Note: Be sure to use capital letters.)
Palladium Inc.
Performance Report
Direct labor hours based on actual
Variable overhead:
Maintenance $ $ $
Power
Indirect labor
Rent
Total overhead $ $ $