Palladium Inc. produces a variety of household cleaning products. Palladium's controller has developed standard costs for the following four overhead items: Overhead Item Maintenance Power Indirect labor Rent Maintenance Power Indirect labor Rent Variable overhead: Assume that actual production required 93,000 direct labor hours at standard. The actual overhead costs incurred were as follows: Maintenance Total Fixed Cost Power Indirect labor $ 86,000 Direct labor hours based on actual Rent 140,000 Total overhead 35,000 Variable Rate per Direct Labor Hour $107,000 41,200 Required: Prepare a performance report for the period based on actual production. If an amount box does not require an entry, enter "0". Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount. If an amount is zero, enter "O" and choose "Not applicable" from the dropdown list. 336,000 $0.20 35,000 0.45 2.10 Actual Performance Report $ $ Budgeted Variance $ $ Favorable $Favorable Favorable Favorable Unfavorable $ Favorabl

Palladium Inc. produces a variety of household cleaning products. Palladium's controller has developed standard costs for the following four overhead items: Overhead Item Maintenance Power Indirect labor Rent Maintenance Power Indirect labor Rent Variable overhead: Assume that actual production required 93,000 direct labor hours at standard. The actual overhead costs incurred were as follows: Maintenance Total Fixed Cost Power Indirect labor $ 86,000 Direct labor hours based on actual Rent 140,000 Total overhead 35,000 Variable Rate per Direct Labor Hour $107,000 41,200 Required: Prepare a performance report for the period based on actual production. If an amount box does not require an entry, enter "0". Enter a favorable variance as a negative amount, and an unfavorable variance as a positive amount. If an amount is zero, enter "O" and choose "Not applicable" from the dropdown list. 336,000 $0.20 35,000 0.45 2.10 Actual Performance Report $ $ Budgeted Variance $ $ Favorable $Favorable Favorable Favorable Unfavorable $ Favorabl

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 3CE: Lansing. Inc., provided the following data for its two producing departments: Machine hours are used...

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Please do not give solution in image format thanku

Palladium Inc. produces a variety of household cleaning products. Palladium's controller has developed standard costs for the following
four overhead items:
Overhead
Item
Maintenance
Power
Indirect labor
Rent
Maintenance
Power
Indirect labor
Rent
Variable overhead:
Assume that actual production required 93,000 direct labor hours at standard. The actual overhead costs incurred were as follows:
Maintenance
Total Fixed
Cost
Power
Indirect labor
$ 86,000
Direct labor hours based on actual
Rent
140,000
Total overhead
35,000
Variable Rate per
Direct
Labor Hour
$107,000
41,200
Required:
Prepare a performance report for the period based on actual production. If an amount box does not require an entry, enter "0". Enter a
favorable variance as a negative amount, and an unfavorable variance as a positive amount. If an amount is zero, enter "0" and choose
"Not applicable" from the dropdown list.
336,000
$0.20
35,000
0.45
2.10
Actual
Performance Report
$
$
Budgeted Variance
$
$
Favorable
$ Favorable
Favorable
Favorable
Unfavorable
$ Favorabl

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