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 $15,000$ hours for production:

Tannin Products Inc.

Factory Overhead Cost Variance Report$-$Trim Department

For the Month Ended July $31$

Productive capacity for the month $19,000$ hrs$.$

Actual productive capacity used for the month $14,000$ hrs$.$

Volume variance$-$unfavorable:

Idle hours at the standard rate for fixed factory overhead