Performance Report Based on Actual Production Ladan Suriman, controller for Healthy Pet Company, has been instructed to develop a flexible budget for overhead costs. The company produces two types of dog food. BasicDiet is a standard mixture for healthy dogs. Special Diet is a reduced protein formulation for older dogs with health problems. The two dog foods use common raw materials in different proportions. The company expects to produce 80,000 bags of each product during the coming year. Basic Diet requires 0.20 direct labor hour per bag, and Special Diet requires 0.30 direct labor hour per bag. Ladan has developed the following fixed and variable costs for each of the four overhead items: Variable Rate per Direct \table[[Overhead Item,Fixed Cost,Labor Hour], [Maintenance, $57,250, $0.50 Performance Report Based on Actual Production Ladan Suriman, controller for Healthy Pet Company, has been instructed to develop a flexible budget for overhead costs. The company produces two types of dog food. BasicDiet is a standard mixture for healthy dogs. SpecialDiet is a reduced protein formulation for older dogs with health problems. The two dog foods use common raw materials in different proportions. The company expects to produce 80,000 bags of each product during the coming year. BasicDiet requires 0.20 direct labor hour per bag, and Special Diet requires 0.30 direct labor hour per bag. Ladan has developed the following fixed and variable costs for each of the four overhead Items: Variable Rate per Direct Overhead Item Maintenance Power Indirect labor Fixed Cost $ 57,250 Labor Hour $0.50 0.40 2.10 Rent 43,500 39,000 Assume that Healthy Pet actually produced 100,000 bags of BasicDiet and 90,000 bags of SpecialDiet. The actual overhead costs incurred were as follows: Maintenance Power $81,300 18,700 Indirect labor 5143,600 Rent 39,000 2. 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. Healthy Pet Company Performance Report Overhead For the Current Year Units produced Production unit: Maintenance Power Actual Budgeted Variance Indirect labor Rent Total overhead 5 the would uni ludne any of the variances to be significant? Can you think of some possible reasons for the variances? Select the