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 8,000 hours for production:

Variable overhead costs:
Indirect factory labor	$23,200
Power and light	5,920
Indirect materials	9,600
Total variable overhead cost		$38,720
Fixed overhead costs:
Supervisory salaries	$36,250
Depreciation of plant and equipment	9,540
Insurance and property taxes	17,810
Total fixed overhead cost		63,600
Total factory overhead cost		$102,320

Tannin has available 12,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 7,000 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	$19,790
Power and light	5,090
Indirect materials	8,800
Total variable cost	$33,680

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.

Productive capacity for the month 12,000 hrs.
Actual productive capacity used for the month 7,000 hrs.
	Actual Cost	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-favorableNet controllable variance-unfavorable	blank	blank	$- Select -	blank
Volume variance-unfavorable:
Idle hours at the standard rate for fixed factory overhead	blank	blank	fill in the blank 29	blank
Total factory overhead cost variance-favorableTotal factory overhead cost variance-unfavorable	blank	blank	$- Select -