factory overhaed cost

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 15,000 hours for production: Variable overhead costs: Indirect factory labor Power and light $51,000 11,400 Indirect materials 24,000 Total variable overhead cost $ 86,400 Faced overhead costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes $57,400 15,110 28.190 Total fixed overhead cost 100,700 Total factory overhead cost $187,100 Tannin has available 19,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 14,000 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 $46,410 Power and light 10.450 Indirect materials 23,500 Total variable cost $80,360 Tannin Products Inc. Factory Overhead Cost Variance Report-Trim Department For the Month Ended July 31 Productive capacity for the month 19,000 hrs. Actual productive capacity used for the month 14,000 hrs. Budget (at actual production) Actual Favorable Variances Unfavorable Variances Variable factory overhead costs: Indirect factory labor Power and light Indirect materials Total variable factory overhead cost Fixed factory overhead costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed factory overhead cost Q000 20001 - Total factory overhead cost Total controllable variances Idle hours at the standard rate for foued factory overhead