Palladium Inc. produces a variety of household cleaning products. Palladium’s controller has developed standard costs for the following four overhead items: Overhead Item Total Fixed Cost Variable Rate per Direct Labor Hour Maintenance $ 86,000 $0.20 Power 0.45 Indirect labor 140,000 2.10 Rent 35,000 Assume that actual production required 93,000 direct labor hours at standard. The actual overhead costs incurred were as follows: Maintenance $107,000 Power 41,200 Indirect labor 336,000 Rent 35,000 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. Performance Report Actual Budgeted Variance Direct labor hours based on actual fill in the blank 1 fill in the blank 2 fill in the blank 3 Overhead: Maintenance $fill in the blank 5 $fill in the blank 6 $fill in the blank 7 Power fill in the blank 9 fill in the blank 10 fill in the blank 11 Indirect labor fill in the blank 13 fill in the blank 14 fill in the blank 15 Rent fill in the blank 17 fill in the blank 18 fill in the blank 19 Total overhead $fill in the blank 21 $fill in the blank 22 $fill in the blank 23
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Performance Report Based on Actual Production
Palladium Inc. produces a variety of household cleaning products. Palladium’s controller has developed
| Overhead Item | Total Fixed Cost | Variable Rate per Direct Labor Hour |
| Maintenance | $ 86,000 | $0.20 |
| Power | 0.45 | |
| Indirect labor | 140,000 | 2.10 |
| Rent | 35,000 |
Assume that actual production required 93,000 direct labor hours at standard. The actual overhead costs incurred were as follows:
| Maintenance | $107,000 |
| Power | 41,200 |
| Indirect labor | 336,000 |
| Rent | 35,000 |
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.
| Performance Report | ||||
| Actual | Budgeted | Variance | ||
| Direct labor hours based on actual | fill in the blank 1 | fill in the blank 2 | fill in the blank 3 | |
| Overhead: | ||||
| Maintenance | $fill in the blank 5 | $fill in the blank 6 | $fill in the blank 7 | |
| Power | fill in the blank 9 | fill in the blank 10 | fill in the blank 11 | |
| Indirect labor | fill in the blank 13 | fill in the blank 14 | fill in the blank 15 | |
| Rent | fill in the blank 17 | fill in the blank 18 | fill in the blank 19 | |
| Total overhead | $fill in the blank 21 | $fill in the blank 22 | $fill in the blank 23 |
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