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Need some help with accounting questions! Thanks in advance! Factory Overhead Cost Variance Report Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared
Need some help with accounting questions! Thanks in advance!
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 capacity of 7,100 hours. Variable costs: Indirect factory wages $22,010 Power and light 14,555 Indirect materials 12,425 Total variable cost $48,990 Fixed costs: Supervisory salaries $12,570 Depreciation of plant and equipment 32,260 Insurance and property taxes 9,840 Total fixed cost 54,670 Total factory overhead cost $103,660 During October, the department operated at 7,500 standard hours, and the factory overhead costs incurred were indirect factory wages, $23,480; power and light, $15,100; indirect materials, $13,400; supervisory salaries, $12,570; depreciation of plant and equipment, $32,260; and insurance and property taxes, $9,840. Required: Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 7,500 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per uni computations to the nearest cent, if required. If an amount box does not require an entry, leave it blank. Unfavorable Favorable Variances Variances Feeling Better Medical Inc. Factory Overhead Cost Variance Report-Assembly Department For the Month Ended October 31 Normal capacity for the month 7,100 hrs. Actual production for the month 7,500 hrs. Budget Actual (at Actual Cost Production) 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 89 Total fixed cost pin Total factory overhead cost Total controllable variances Volume variance-favorable: Excess hours used over normal at the standard rate for fixed factory overhead odStep by Step Solution
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