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:

Variable overhead costs:
Indirect factory labor	$24,000
Power and light	7,500
Indirect materials	17,000
Total variable overhead cost		$ 48,500
Fixed overhead costs:
Supervisory salaries	$43,890
Depreciation of plant and equipment	11,550
Insurance and property taxes	21,560
Total fixed overhead cost		77,000
Total factory overhead cost		$125,500

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:

Actual variable factory overhead costs:
Indirect factory labor	$21,060
Power and light	6,630
Indirect materials	16,100
Total variable cost	$43,790

Construct a factory overhead 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 14,000 hrs.
Actual productive capacity used for the month 9,000 hrs.
	Budget (at actual production)	Actual	Favorable Variances	Unfavorable 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			$	$
				$
Idle hours at the standard rate for fixed factory overhead
				$