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 $19,200 Power and light 5,920 Indirect materials 12,800 Total variable overhead cost $37,920 Fixed overhead costs: Supervisory salaries $34,200 Depreciation of plant and equipment 9,000 Insurance and property taxes 16,800 Total fixed overhead cost 60,000 Total factory overhead cost $97,920 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 $16,380 5,090 Power and light Indirect materials 11,800 Total variable cost $33,270 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 12,000 hrs. Actual productive capacity used for the month 7,000 hrs. Budget Unfavorable (Favorable) Actual Cost (at Actual Production) Variances Variances Variable factory overhead costs: Indirect factory labor 16,380 x Power and light 5,090 X Indirect materials 11,800 x 33,270 x 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 Qudd Quod Total factory overhead cost Total controllable variances Net controllable variance-unfavorable Volume variance-unfavorable: Idle hours at the standard rate for fixed factory overhead Total factory overhead cost variance-unfavorable