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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

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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 Department for October of the current year. The company expected to operate the department at 100% of normal capacity of 30,000 hours. $247,500 189,000 52.500 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 $489,000 $126.000 70,000 44,000 240,000 Total factory overhead cost $729,000 During October, the department operated at 28,500 hours, and the factory overhead costs incurred were indirect factory wages, $234.000 power and light $175,500; indirect materials, $50,600; supervisory salaries, $126,000; depreciation of plant and equipment, $70,000, and insurance and property taxes, $44,000. Required: Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 25, 500 hours. 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 requires entry, leave le blank Feeling Better Medical Inc. Factory Overhead Cost Variance Report-Assembly Department Feeling Better Medical Inc. Factory Overhead Cost Variance Report-Assembly Department For the Month Ended October 31 Normal capacity for the month 30,000 hrs. Actual production for the month 28,500 hrs. Budget (at Actual Unfavorable Production) Variances Variable factory overhead costs: Indirect factory wages $ 235,125 Power and light Favorable Variances Indirect materials Total variable cost Fixed factory overhead costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total foed cost Total factory overhead cost Total controllable variances Volume variance-unfavorable: Idie hours at the standard rate for fixed factory overhead

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