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Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current

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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 16,000 hours for production: Variable overhead costs: Indirect factory labor Power and light $48,000 12,160 Indirect materials 25,600 Total variable overhead cost $85,760 Fixed overhead costs: Supervisory salaries $66,120 Depreciation of plant and equipment 17,400 Insurance and property taxes 32,480 Total fixed overhead cost 116,000 Total factory overhead cost $201,760 Tannin has available 20,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 15,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows:

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