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 Power and light $39,200 10,080 Indirect materials 21,000 Total variable overhead cost $70,280 Fixed overhead costs: Supervisory salaries $60,530 Depreciation of plant and equipment 15,930 Insurance and property taxes 29,740 Total fixed overhead cost 106,200 $176,480 Total factory overhead cost 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 $35,490 Power and light 9,190 Indirect materials 20,500 Total variable cost $65,180 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. 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 Volume variance-unfavorable: Idle hours at the standard rate for fixed factory overhead Budget Actual Cost (at Actual Production) Unfavorable (Favorable) Variances Variances 1000000000 0000 00000 100.00 Q