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Question: Performance Report Based on Actual Production Refer to the information for Healthy Pet Company on the previous page. Assume that Healthy Pet actually produced 120,000 bags of BasicDiet and 100,000 bags of SpecialDiet. The actual overhead costs incurred were as follows:
Maintenance $58,760 Indirect labor $161,000
Power 54,150 Rent 42,000
Required: 1. Calculate the number of direct labor hours budgeted for actual production of the two products.
2. Prepare a performance report for the period based on actual production.
3. Conceptual Connection: Based on the report, would you judge any of the variances to be significant? Can you think of some possible reasons for the variances?
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