Star Medical, Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for

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Star Medical, Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October 2012. The company expected to operate the department at 100% of normal capacity of 24,000 hours.

Star Medical, Inc., a manufacturer of disposable medical supplie


During October, the department operated at 22,500 hours, and the factory overhead costs incurred were indirect factory wages, $167,550; power and light, $116,800; indirect materials, $31,950; supervisory salaries, $72,000; depreciation of plant and equipment, $51,500; and insurance and property taxes, $24,100.

Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 22,500 hours. Use the minus sign to enter favorable variances as negative numbers.

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Accounting

ISBN: 9780538475006

24th Edition

Authors: Carl S Warren, James M Reeve, Jonathan Duchac

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