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 18,000 hours for production:

Variable overhead costs:
Indirect factory labor	$59,400
Power and light	13,860
Indirect materials	30,600
Total variable overhead cost		$103,860
Fixed overhead costs:
Supervisory salaries	$68,970
Depreciation of plant and equipment	18,150
Insurance and property taxes	33,880
Total fixed overhead cost		121,000
Total factory overhead cost		$224,860

Tannin has available 22,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 17,000 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	$54,700
Power and light	12,850
Indirect materials	30,300
Total variable cost	$97,850

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 22,000 hrs.
Actual productive capacity used for the month 17,000 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			$- Select -
Volume variance-unfavorable:
Idle hours at the standard rate for fixed factory overhead			fill in the blank 29
Total factory overhead cost variance-favorableTotal factory overhead cost variance-unfavorable			$- Select -