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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 a afavorable 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 Actual Budgeted Variance nits produced 190,000 x 160,000 x V Not applicable roduction unit: Maintenance 81,300 80,750 550 V Unfavorable Power 18,700 18,800 100 X Favorable Indirect labor 143,600 142,200 V 1,400 V Unfavorable Rent 39,000 39,000 v V Not applicable

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 a afavorable 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 Actual Budgeted Variance nits produced 190,000 x 160,000 x V Not applicable roduction unit: Maintenance 81,300 80,750 550 V Unfavorable Power 18,700 18,800 100 X Favorable Indirect labor 143,600 142,200 V 1,400 V Unfavorable Rent 39,000 39,000 v V Not applicable

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 67P: Use the following information for Problems 9-67 through 9-69: Ladan Suriman, controller for Healthy...
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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 Actual Budgeted Variance Units produced 190,000 x 160,000 X Not applicable Production unit: Maintenance 81,300 2$ 80,750 $ 550 Unfavorable Power 18,700 18,800 100 X Favorable Indirect labor 143,600 142,200 1,400 Unfavorable Rent 39,000 39,000 Not applicable
Transcribed Image Text: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 Actual Budgeted Variance Units produced 190,000 x 160,000 X Not applicable Production unit: Maintenance 81,300 2$ 80,750 $ 550 Unfavorable Power 18,700 18,800 100 X Favorable Indirect labor 143,600 142,200 1,400 Unfavorable Rent 39,000 39,000 Not applicable
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 SpecialDiet 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 Fixed Cost Labor Hour Maintenance $ 57,250 $0.50 Power 0.40 Indirect labor 43,500 2.10 Rent 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 $81,300 Power 18,700 Indirect labor $143,600 Rent 39,000 Required: 1. Calculate the number of direct labor hours budgeted for actual production of the two products. 47,000 hours
Transcribed Image Text: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 SpecialDiet 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 Fixed Cost Labor Hour Maintenance $ 57,250 $0.50 Power 0.40 Indirect labor 43,500 2.10 Rent 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 $81,300 Power 18,700 Indirect labor $143,600 Rent 39,000 Required: 1. Calculate the number of direct labor hours budgeted for actual production of the two products. 47,000 hours
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