Flexible Overhead Budget

Leno Manufacturing Company prepared the following factory overhead cost budget for the Press Department for October of the current year, during which it expected to require 9,000 hours of productive capacity in the department:

Variable overhead cost:
Indirect factory labor	$76,500
Power and light	2,790
Indirect materials	21,600
Total variable overhead cost		$100,890
Fixed overhead cost:
Supervisory salaries	$35,310
Depreciation of plant and equipment	22,200
Insurance and property taxes	14,120
Total fixed overhead cost		71,630
Total factory overhead cost		$172,520

Assuming that the estimated costs for November are the same as for October, prepare a flexible factory overhead cost budget for the Press Department for November for 7,000, 9,000, and 11,000 hours of production. Round your interim computations to the nearest cent, if required. Enter all amounts as positive numbers.

Leno Manufacturing Company
Factory Overhead Cost Budget-Press Department
For the Month Ended November 30
Direct labor hours	7,000	9,000	11,000
Variable overhead cost:
Indirect factory labor	$. ?	$. ?	$ ?
Power and light	?	?	?
Indirect materials	?	?	?
Total variable factory overhead	$ ?	$ ?	$ ?
Fixed factory overhead cost:	?	?	?
Supervisory salaries	$ ?	$ ?	$ ?
Depreciation of plant and equipment	?	?	?
Insurance and property taxes	?	?	?
Total fixed factory overhead	$. ?	$ ?	$ ?
Total factory overhead cost	$ ?	$ ?	$ ?

5.

Factory Overhead Cost Variances

The following data relate to factory overhead cost for the production of 4,000 computers:

Actual:	Variable factory overhead	$71,800
	Fixed factory overhead	27,000
Standard:	4,000 hrs. at $23	92,000

If productive capacity of 100% was 6,000 hours and the total factory overhead cost budgeted at the level of 4,000 standard hours was $101,000, determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. The fixed factory overhead rate was $4.5 per hour. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Variance	Amount	Favorable/Unfavorable
Variable factory overhead controllable variance	$
Fixed factory overhead volume variance
Total factory overhead cost variance	$