URGENT The chequeclearing office of Pay Loans Company is responsible for processing all cheques that come to the company for payment. Managers at the company belleve that varlable overhead costs are essentlally proportional to the number of labourhours worked in the office, so labourhours are used as the actlvity base when preparing varlable overhead budgets and performance reports. Data for October, the most recent month, appear below:
tableBudgeted labourhours,Actual labourhours,Standard labourhours allowed for the actual number of cheques processed,
tabletableCostFormulaperlabourhourtableActualCostsIncurred inOctoberVariable overhead costs:office supplies,$Staff coffee lounge,Indirect labour,Total variable overhead cost,$$
