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Factory Overhead Cost Variance Report Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly
Factory Overhead Cost Variance Report Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October of the current year. The company expected to operate the department at 100% of normal capacity of 7,600 hours. Variable costs: Indirect factory wages Power and light Indirect materials $22,040 14,896 11,856 $48,792 Total variable cost Fixed costs: Supervisory salaries $13,110 Depreciation of plant and equipment Insurance and property taxes 33,630 10,260 Total fixed cost Total factory overhead cost 57,000 $105,792 During October, the department operated at 8,100 standard hours, and the factory overhead costs incurred were indirect factory wages, $23,720; power and light, $15,590; indirect materials, $12,900; supervisory salaries, $13,110; depreciation of plant and equipment, $33,630; and insurance and property taxes, $10,260
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