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Factory Overhead Cost Variance Report

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 $16,000$ hours for production:

Variable overhead cost:

Indirect factory labor $$48,000$

Power and light $12,320$

Indirect materials $27,200$

Total variable overhead cost $ $87,520$

Fixed overhead cost:

Supervisory salaries $$60,420$

Depreciation of plant and equipment $15,900$

Insurance and property taxes $29,680$

Total fixed overhead cost $106,000$

Total factory overhead cost $$193,520$

Tannin has available $20,000$ hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used $15,000$ hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows:

Actual variable factory overhead cost:

Indirect factory labor $$43,880$

Power and light $11,340$

Indirect materials $26,800$

Total variable cost $$82,020$

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, if required.

Tannin Products Inc.

Factory Overhead Cost Variance Report$-$Trim Department

For the Month Ended July $31$

Productive capacity for the month $20,000$ hrs$.$

Actual productive capacity used for the month $15,000$ hrs$.$

Actual Budget $($at actual production$)$ Unfavorable Variances Favorable Variances

Variable factory overhead costs:

Indirect factory labor $fill in the blank $1$

$fill in the blank $2$

$fill in the blank $3$

$fill in the blank $4$

Power and light fill in the blank $5$

fill in the blank $6$

fill in the blank $7$

fill in the blank $8$

Indirect materials fill in the blank $9$

fill in the blank $10$

fill in the blank $11$

fill in the blank $12$

Total variable factory overhead cost $fill in the blank $13$

$fill in the blank $14$

Fixed factory overhead costs:

Supervisory salaries $fill in the blank $15$

$fill in the blank $16$

Depreciation of plant and equipment fill in the blank $17$

fill in the blank $18$

Insurance and property taxes fill in the blank $19$

fill in the blank $20$

Total fixed factory overhead cost $fill in the blank $21$

$fill in the blank $22$

Total factory overhead cost $fill in the blank $23$

$fill in the blank $24$

Total controllable variances $fill in the blank $25$

$fill in the blank $26$

$$-$ Select $-$

Idle hours at the standard rate for fixed factory overhead: fill in the blank $30$