1. Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October of the current year. The company expected to operate the department at 100% of normal capacity of 6,700 hours.

   Variable costs:
   Indirect factory wages	$20,770
   Power and light	13,534
   Indirect materials	11,524
   Total variable cost		$45,828
   Fixed costs:
   Supervisory salaries	$13,560
   Depreciation of plant and equipment	34,790
   Insurance and property taxes	10,610
   Total fixed cost		58,960
   Total factory overhead cost		$104,788

   During October, the department operated at 7,100 standard hours, and the factory overhead costs incurred were indirect factory wages, $22,230; power and light, $14,080; indirect materials, $12,500; supervisory salaries, $13,560; depreciation of plant and equipment, $34,790; and insurance and property taxes, $10,610.

   Required:

   Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 7,100 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per unit computations to the nearest cent, if required. If an amount box does not require an entry, leave it blank.

   Feeling Better Medical Inc.
   Factory Overhead Cost Variance ReportAssembly Department
   For the Month Ended October 31
   Normal capacity for the month 6,700 hrs.
   Actual production for the month 7,100 hrs.
   	Actual Cost	Budget (at Actual Production)	Unfavorable Variances	Favorable Variances
   Variable factory overhead costs:
   Indirect factory wages	$	$	$	$
   Power and light
   Indirect materials
   Total variable cost	$	$
   Fixed factory overhead costs:
   Supervisory salaries	$	$
   Depreciation of plant and equipment
   Insurance and property taxes
   Total fixed cost	$	$
   Total factory overhead cost	$	$
   Total controllable variances			$	$
   			$
   Volume variance-favorable:
   Excess hours used over normal at the standard rate for fixed factory overhead
   			$