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:

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 Power and light Indirect materials $61,200 12,960 28,800 Total variable overhead cost 102,960 Fixed overhead costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes $71,480 18,810 35,110 Total fixed overhead cost 125,400 Total factory overhead cost 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: $228,360 Indirect factory labar Power and light Indirect materials $56,360 12,020 28,600 596,980 Total varlable cost Construct a factory averhead cost variance report for the Trim Department for July. Enter all amounts as positive numbers. 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. Variable factory overhead costs: Indirect factory labor Power and light Indirect materials Total variable factory overhead cost Fixed factory overhead costs: Budget (at actual production) Favorable Variances Unfavorable Variances Actual Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed factory overhead cost Total factory overhead cost Total controllable variances Idle hours at the standard rate for fixed factory overhead