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 6,400 hours.

Variable costs:
Indirect factory wages	$18,560
Power and light	11,584
Indirect materials	9,024
Total variable cost		$39,168
Fixed costs:
Supervisory salaries	$12,810
Depreciation of plant and equipment	32,850
Insurance and property taxes	10,020
Total fixed cost		55,680
Total factory overhead cost		$94,848

During October, the department operated at 6,800 standard hours, and the factory overhead costs incurred were indirect factory wages, $19,920; power and light, $12,090; indirect materials, $9,800; supervisory salaries, $12,810; depreciation of plant and equipment, $32,850; and insurance and property taxes, $10,020.

Required:

Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 6,800 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.

Feeling Better Medical Inc. Factory Overhead Cost Variance ReportAssembly Department For the Month Ended October 31

Normal capacity for the month 6,400 hrs.
Actual production for the month 6,800 hrs.
	Actual Cost	Budget (at Actual Production)	Unfavorable Variances	Favorable Variances
Variable factory overhead costs:
Indirect factory wages	$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 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 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
Net controllable variance-favorableNet controllable variance-unfavorableNet controllable variance-unfavorable			$Net controllable variance-unfavorable
Volume variance-favorable:
Excess hours used over normal at the standard rate for fixed factory overhead			fill in the blank 29
Total factory overhead cost variance-favorableTotal factory overhead cost variance-unfavorableTotal factory overhead cost variance-favorable			$Total factory overhead cost variance-favorable