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 20,000 hours for production: Variable overhead cost Indirect factory labor Power and light Indirect materials Total variable overhead $46,000 12,000 20,000 $78,000 Fixed overhead cost: Supervisory salaries $54,500 40,000 35,500 Depreciation of plant and equipment Insurance and property taxes Total fixed overhead cost Total factory overhead cost Tannin has available 25,00 ours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Thim Departntent actually used 22,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as 130,000 $208,000 follows: Actual variable factory overhead cost: Indirect factory labor Power and light Indirect materials Total variable cost $49,700 13,000 24,000 $86,700 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 25,000 hrs Actual productive capacty used for the month 22,000 hrs Actual 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 Foxed factory overhead costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fxed factory overhead cost Total factory overhead cost Total controlable vanances tde hours at the standard rate for fued factory