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 13,000 hours for production: $40,300 9,360 19,500 $ 69,160 Variable overhead cost: Indirect factory labor Power and light Indirect materials Total variable overhead cost Fixed overhead cost: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed overhead cost $58,140 15,300 28,560 102,000 $171,160 Total factory overhead cost Tannin has available 17,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 12,000 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 Power and light Indirect materials $36,270 8,480 18,900 $63,650 Total variable cost Actual Real 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 17,000 hrs. Actual productive capacity used for the month 12,000 hrs. Budget (at actual production) Unfavorable Variances Favorable Variances Variable factory overhead costs: Indirect factory labor 36,270 $ Power and light 8,480 L Indirect materials 18,900 Total variable factory overhead cost 63,650 Fixed factory overhead costs: Supervisory salaries $ 58,140 $ Depreciation of plant and equipment 15,300 Insurance and property taxes 128,5601 Total fixed factory overhead cost $ 102,000 $ Total factory overhead cost $ 165,650 $ 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