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 8,000 hours for production: Variable overhead cost: Indirect factory labor $26,400 Power and light 6,000 Indirect materials 10,400 Total variable overhead cost $ 42,800 Fixed overhead cost: Supervisory salaries $38,990 Depreciation of plant and equipment 10,260 Insurance and property taxes 19,150 Total fixed overhead cost 68,400 Total factory overhead cost $111,200 Tannin has available 12,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 7,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead cost: Indirect factory labor $22,520 Power and light 5,160 Power and light 5,160 Indirect materials 9,600 Total variable cost $37,280 Construct a factory overhead cost variance report for the Trim Department for July. 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 require an entry, leave it blank. Round your interim computations to the nearest cent, if required. Tannin Products Inc. Factory Overhead Cost Variance Report-Trim Department For the Month Ended July 31 Productive capacity for the month 12,000 hrs. Actual productive capacity used for the month 7,000 hrs. Actual Budget (at actual production) Unfavorable Variances Variable factory overhead costs: Indirect factory labor $ Favorable Variances 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 $ Total fixed factory overhead cost Od 00 Total factory overhead cost Total controllable variances 0 $ Idle hours at the standard rate for fixed factory overhead