1. 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 10,000 hours for production:

Line Item Description	Amount	Amount
Variable overhead costs:
Indirect factory labor	$26,000
Power and light	7,700
Indirect materials	14,000
Total variable overhead cost		$47,700
Fixed overhead costs:
Supervisory salaries	$45,490
Depreciation of plant and equipment	11,970
Insurance and property taxes	22,340
Total fixed overhead cost		79,800
Total factory overhead cost		$127,500

Tannin has available 14,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 9,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows:

Line Item Description	Amount
Indirect factory labor	$22,820
Power and light	6,810
Indirect materials	13,200
Total variable cost	$42,830

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 14,000 hrs. Actual productive capacity used for the month 9,000 hrs.

Line Item Description	Actual Cost	Budget (at Actual Production)	Unfavorable Variances	Favorable Variances
Variable factory overhead costs:
Indirect factory labor	?	?	?	?
Power and light	?	?	?	?
Indirect materials	?	?	?	?
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	?	?
Total factory overhead cost	?	?
Total controllable variances			$Total controllable variances	$Total controllable variances
Net controllable variance-favorable			?
Volume variance-unfavorable:
Idle hours at the standard rate for fixed factory overhead			?
Total factory overhead cost variance-unfavorable			?

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2. Standard Direct Materials Cost per Unit from Variance Data

The following data relating to direct materials cost for October of the current year are taken from the records of Good Clean Fun Inc., a manufacturer of organic toys:

Line Item Description	Value
Quantity of direct materials used	7,700 lbs.
Actual unit price of direct materials	$4.40 per lb.
Units of finished product manufactured	1,845 units
Standard direct materials per unit of finished product	4 lbs.
Direct materials quantity varianceunfavorable	$1,440
Direct materials price variancefavorable	$770

Determine the standard direct materials cost per unit of finished product, assuming that there was no inventory of work in process at either the beginning or the end of the month. If required, round your standard cost per unit answer to two decimal places.

Line Item Description	Unit
Product finished	?
Standard finished product for direct materials used	?
Deficiency of finished product for materials used	?
Standard cost for direct materials	?