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 11,000 hours for production:

Variable overhead costs:
Indirect factory labor	$30,800
Power and light	8,140
Indirect materials	16,500
Total variable overhead cost		$55,440
Fixed overhead costs:
Supervisory salaries	$52,160
Depreciation of plant and equipment	13,730
Insurance and property taxes	25,610
Total fixed overhead cost		91,500
Total factory overhead cost		$146,940

Tannin has available 15,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 10,000 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	$27,300
Power and light	7,270
Indirect materials	15,800
Total variable cost	$50,370

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 15,000 hrs.
Actual productive capacity used for the month 10,000 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

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 11,000 hours for production: Variable overhead costs: Indirect factory labor $30,800 Power and light 8,140 Indirect materials 16,500 Total variable overhead cost $55,440 Fixed overhead costs: Supervisory salaries $52,160 Depreciation of plant and equipment 13,730 Insurance and property taxes 25,610 Total fixed overhead cost 91,500 Total factory overhead cost $146,940 Tannin has available 15,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 10,000 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 $27,300 Power and light 7,270 Indirect materials 15,800 Total variable cost $50,370 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 15,000 hrs. Actual productive capacity used for the month 10,000 hrs. Budget Actual Cost (at Actual Production) Variable factory overhead costs: Indirect factory labor $ 700 X $ 700 x Unfavorable Variances (Favorable) Variances $ $ 130 x Power and light 130 X Indirect materials 15,000 x 800 700 $ 50,400 X $ 50,370 X Total variable factory overhead cost Fixed factory overhead costs: Supervisory salaries $ 52,160 52,160 Depreciation of plant and equipment 13,730 13,730 Insurance and property taxes 25,610 25,610 Total fixed factory overhead cost $ 91,500 91,500 Total factory overhead cost $ 141,900 X $ 141,870 x Total controllable variances $ 830 X $ 800 Net controllable variance-favorable $ -30 Volume variance-unfavorable: Idle hours at the standard rate for fixed factory overhead 30,500 Total factory overhead cost variance-unfavorable $ 30,470