OBJ. 4 Net controllable variance, $250 F EX 23-19 Factory overhead cost variance report Medical Molded Products Inc. prepared the following factory overhead cost budget for the Trim Department for March 2012, during which it expected to use 10,000 hours for production: $29,000 7,500 13,000 $ 49,500 Variable overhead cost: Indirect factory labor Power and light Indirect materials Total variable cost Fixed overhead cost: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed cost Total factory overhead cost $34,100 24,800 22,100 81,000 $130.500 1090 Chapter 23 Performance Evaluation Using Variances from Standard Costs Medical Molded Products has available 15,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During March, the Trim Depart- ment actually used 11,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for March was as follows: Actual variable factory overhead cost: Indirect factory labor $31,100 Power and light 8,100 Indirect materials 15,000 Total variable cost $54,200 Construct a factory overhead cost variance report for the Trim Department for March. MEDICAL MOLDED PRODUCTS INC. Factory Overhead Cost Variance Report-Trim Department For the Month Ended March 31, 2012 Productive capacity for the month: Actual productive capacity used for the month hours hours Budget (at actual production) Variances Favorable Unfavorable Actual Variable factory overhead costs: Indirect factory labor Power and light Indirect materials Total Fixed factory overhead costs: Supervisory salaries Depreciation of plant and equip Insurance and property taxes Total Total factory overhead cost Total controllable variances Net controllable variance (favorable) unfavorable Idle Hours x Fixed Factory OH Rate Volume variance (fav.) unfav. Total factory overhead cost variance (favorable) unfavorable Factory Overhead Actual costs Balance Applied costs Actual Factory Overhead Applied Factory Overhead Budgeted Factory Overhead for Amount Produced Variable cost Fixed cost Total Controllable Variance Volume Variance Total Factory Overhead Cost Variance Supporting calculation: Variable factory overhead rate: Budgeted total variable cost Budgeted hours Variable factory overhead rate Fixed factory overhead rate: Total fixed costs Productive capacity hours Fixed factory overhead rate Total Actual hours Applied costs