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 12,000 hours for production:

Variable overhead costs:
Indirect factory labor	$28,800
Power and light	8,880
Indirect materials	13,200
Total variable overhead cost		$ 50,880
Fixed overhead costs:
Supervisory salaries	$46,510
Depreciation of plant and equipment	12,240
Insurance and property taxes	22,850
Total fixed overhead cost		81,600
Total factory overhead cost		$132,480

Tannin has available 16,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 11,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows:

Actual variable factory overhead costs:
Indirect factory labor	$25,740
Power and light	7,990
Indirect materials	12,700
Total variable cost	$46,430

Construct a factory overhead cost variance report for the Trim Department for July. Enter all amounts as positive numbers. 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 16,000 hrs.
Actual productive capacity used for the month 11,000 hrs.
	Budget (at actual production)	Actual	Favorable Variances	Unfavorable Variances
Variable factory overhead costs:
Indirect factory labor	$	$	$
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 factory overhead cost	$	$
Total controllable variances			$	$
				$
Idle hours at the standard rate for fixed factory overhead
				$