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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 of normal capacity of hours.
Line Item Description Amount Amount
Variable costs:
Indirect factory wages $
Power and light
Indirect materials
Total variable cost $
Fixed costs:
Supervisory salaries $
Depreciation of plant and equipment
Insurance and property taxes
Total fixed cost
Total factory overhead cost $
During October, the department operated at standard hours, and the factory overhead costs incurred were indirect factory wages, $; power and light, $; indirect materials, $; supervisory salaries, $; depreciation of plant and equipment, $; and insurance and property taxes, $
Required:
Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per unit computations to the nearest cent, if required. If an amount box does not require an entry, leave it blank.
Normal capacity for the month hrs
Actual production for the month hrs
Feeling Better Medical Inc.
Factory Overhead Cost Variance ReportAssembly Department
For the Month Ended October
Line Item Description
Actual
Cost Budget
at Actual
Production
Unfavorable
Variances
Favorable
Variances
Variable factory overhead costs:
Indirect factory wages $Indirect factory wages $Indirect factory wages $Indirect factory wages $Indirect factory wages
Power and light Power and light Power and light Power and light Power and light
Indirect materials Indirect materials Indirect materials Indirect materials Indirect materials
Total variable cost $Total variable cost $Total variable cost
Fixed factory overhead costs:
Supervisory salaries $Supervisory salaries $Supervisory salaries
Depreciation of plant and equipment Depreciation of plant and equipment Depreciation of plant and equipment
Insurance and property taxes Insurance and property taxes Insurance and property taxes
Total fixed cost $Total fixed cost $Total fixed cost
Total factory overhead cost $Total factory overhead cost $Total factory overhead cost
Total controllable variances $Total controllable variances $Total controllable variances
blank blank $ Select blank
Volume variancefavorable:
Excess hours used over normal at the standard rate for fixed factory overhead blank blank fill in the blank blank
blank blank $ Select blank
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