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 17,000 hours for production: Variable overhead cost: Indirect factory labor $42,500 Power and light 12,580 Indirect materials 28,900 Total variable overhead cost $ 83,980 Fixed overhead cost: Supervisory salaries $69,430 Depreciation of plant and equipment 18,270 Insurance and property taxes 34,100 Total fixed overhead cost 121,800 Total factory overhead cost $205,780 Tannin has available 21,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 16,000 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 $39,000 Power and light 11,630 Indirect materials 28,600 Total variable cost $79,230 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 21,000 hrs. Actual productive capacity used for the month 16,000 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 factory overhead cost $ $ Total controllable variances Idle hours at the standard rate for fixed factory overhead 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 17,000 hours for production: Variable overhead cost: Indirect factory labor $42,500 Power and light 12,580 Indirect materials 28,900 Total variable overhead cost $ 83,980 Fixed overhead cost: Supervisory salaries $69,430 Depreciation of plant and equipment 18,270 Insurance and property taxes 34,100 Total fixed overhead cost 121,800 Total factory overhead cost $205,780 Tannin has available 21,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 16,000 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 $39,000 Power and light 11,630 Indirect materials 28,600 Total variable cost $79,230 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 21,000 hrs. Actual productive capacity used for the month 16,000 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 factory overhead cost $ $ Total controllable variances Idle hours at the standard rate for fixed factory overhead
