eBook Calculator Print Item Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 14,000 hours for production: Variable overhead costs: Indirect factory labor $42,000 Power and light 10,220 Indirect materials 19,600 Total variable overhead cost 571,820 Fixed overhead costs: Supervisory salaries $61,560 Depreciation of plant and equipment 16,200 Insurance and property taxes 30,240 Total fixed overhead cost 108,000 Total factory overhead cost $179,820 Tanninhas available 18,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 13,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead costs: Indirect factory labor $38,030 Power and light 9,320 Indirect materials 19,100 Total variable cost $66,450 Construct a factory overhead cost variance report for the Trim Department for July. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry, leave it blank Round your interim computations to the nearest cent, required Previous Next > Factor required. Tannin Products Inc. Factory Overhead Cost Variance Report-Trim Department For the Month Ended July 31 Productive capacity for the month 18,000 hrs. Actual productive capacity used for the month 13,000 hrs. Budget (at Actual Production) Variable factory overhead costs: Indirect factory labor Power and light Unfavorable Variances (Favorable) Variances Indirect materials Total variable factory overhead cost Fixed factory overhead costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes 1 000 000 Total fixed factory overhead cost Total factory overhead cost w Total controllable variances Net controllable variance-favorable Volume variance-unfavorable: Idle hours at the standard rate for fixed factory overhead Total factory overhead cost variance-unfavorable DULU Direct Labor Variances bor 2 hrs. Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data for October of the current year are available: Quantity of direct labor used 420 hrs. Actual rate for direct labor $14.30 per hr. Bicycles completed in October 200 bicycles Standard direct labor per bicycle Standard rate for direct labor $14.60 per hr. a. Determine for October the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Labor Rate Variance Favorable Direct Labor Time Variance Unfavorable Total Direct Labor Cost Variance Unfavorable b. How much direct labor should be debited to Work in Process
