Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need help with this variance report PR 23-4B Factory overhead cost variance report Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the
Need help with this variance report
PR 23-4B Factory overhead cost variance report 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 capac- ity of 30,000 hours. OBJ. 4 ollable , $(1,450) F Excel Variable costs: Indirect factory wages Power and light $247,500 189,000 eral ger Indirect materials 52,500 Total variable cost $489,000 Fixed costs: $126,000 Supervisory salaries Depreciation of plant and equipment Insurance and property taxes 70,000 44,000 240,000 Total fixed cost $729,000 Total factory overhead cost During October, the department operated at 28,500 hours. The factory overhead Costs incurred were indirect factory wages, $234,000; power and light, $178,500; indirect materials, $50,600; supervisory salaries, $126,000; depreciation of plant and equipment, $70,000; and insurance and property taxes, $44,000. Instructions Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 28,500 hours. PR 23-4B Factory overhead cost variance report 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 capac- ity of 30,000 hours. OBJ. 4 ollable , $(1,450) F Excel Variable costs: Indirect factory wages Power and light $247,500 189,000 eral ger Indirect materials 52,500 Total variable cost $489,000 Fixed costs: $126,000 Supervisory salaries Depreciation of plant and equipment Insurance and property taxes 70,000 44,000 240,000 Total fixed cost $729,000 Total factory overhead cost During October, the department operated at 28,500 hours. The factory overhead Costs incurred were indirect factory wages, $234,000; power and light, $178,500; indirect materials, $50,600; supervisory salaries, $126,000; depreciation of plant and equipment, $70,000; and insurance and property taxes, $44,000. Instructions Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 28,500 hoursStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started