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 14,000 hours for production:

Variable overhead costs:
Indirect factory labor	$47,600
Power and light	10,360
Indirect materials	15,400
Total variable overhead cost		$73,360
Fixed overhead costs:
Supervisory salaries	$56,430
Depreciation of plant and equipment	14,850
Insurance and property taxes	27,720
Total fixed overhead cost		99,000
Total factory overhead cost		$172,360

Tannin has available 18,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 13,000 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	$43,100
Power and light	9,450
Indirect materials	15,000
Total variable cost	$67,550

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 18,000 hrs.
Actual productive capacity used for the month 13,000 hrs.
	Actual Cost	Budget (at Actual Production)	Unfavorable Variances	(Favorable) 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			$	$
Net controllable variance-favorable			$
Volume variance-unfavorable:
Idle hours at the standard rate for fixed factory overhead
Total factory overhead cost variance-unfavorable			$

Productive capacity for the month 18,000 hrs. Actual productive capacity used for the month 13,000 hrs. Budget Actual Cost (at Actual Production) Unfavorable Variances (Favorable) 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 Net controllable variance-favorable Volume variance-unfavorable: Idle hours at the standard rate for fixed factory overhead Total factory overhead cost variance-unfavorable