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 9,000 hours for production:

Variable overhead cost:
Indirect factory labor	$21,600
Power and light	6,660
Indirect materials	12,600
Total variable overhead cost		$ 40,860
Fixed overhead cost:
Supervisory salaries	$38,530
Depreciation of plant and equipment	10,140
Insurance and property taxes	18,930
Total fixed overhead cost		67,600
Total factory overhead cost		$108,460

Tannin has available 13,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 8,000 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	$18,720
Power and light	5,810
Indirect materials	11,800
Total variable cost	$36,330

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 13,000 hrs.
Actual productive capacity used for the month 8,000 hrs.
	Actual	Budget (at actual production)	Unfavorable Variances	Favorable Variances
Variable factory overhead costs:
Indirect factory labor	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3	$fill in the blank 4
Power and light	fill in the blank 5	fill in the blank 6	fill in the blank 7	fill in the blank 8
Indirect materials	fill in the blank 9	fill in the blank 10	fill in the blank 11	fill in the blank 12
Total variable factory overhead cost	$fill in the blank 13	$fill in the blank 14
Fixed factory overhead costs:
Supervisory salaries	$fill in the blank 15	$fill in the blank 16
Depreciation of plant and equipment	fill in the blank 17	fill in the blank 18
Insurance and property taxes	fill in the blank 19	fill in the blank 20
Total fixed factory overhead cost	$fill in the blank 21	$fill in the blank 22
Total factory overhead cost	$fill in the blank 23	$fill in the blank 24
Total controllable variances			$fill in the blank 25	$fill in the blank 26
Net controllable variance-unfavorable				$fill in the blank 28
Volume variance-unfavorable:
Idle hours at the standard rate for fixed factory overhead				fill in the blank 30
Total factory overhead cost variance-unfavorable				$fill in the blank 32