Question
Please help :) Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of
Please help :)
Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 5,300 hours.
Variable costs: | ||
Indirect factory wages | $16,430 | |
Power and light | 9,911 | |
Indirect materials | 8,321 | |
Total variable cost | $34,662 | |
Fixed costs: | ||
Supervisory salaries | $9,870 | |
Depreciation of plant and equipment | 25,330 | |
Insurance and property taxes | 7,730 | |
Total fixed cost | 42,930 | |
Total factory overhead cost | $77,592 |
During May, the department operated at 5,600 standard hours. The factory overhead costs incurred were indirect factory wages, $17,530; power and light, $10,280; indirect materials, $9,000; supervisory salaries, $9,870; depreciation of plant and equipment, $25,330; and insurance and property taxes, $7,730.
Required:
Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 5,600 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.
Normal capacity for the month 5,300 hrs. | ||||
Actual production for the month 5,600 hrs. | ||||
Actual | Budget | Unfavorable Variances | Favorable Variances | |
Variable costs: | ||||
Indirect factory wages | $fill in the blank 1 | $fill in the blank 2 | $fill in the blank 3 | $fill in the blank 4 |
Power and light | fill in the blank 5 | fill in the blank 6 | fill in the blank 7 | fill in the blank 8 |
Indirect materials | fill in the blank 9 | fill in the blank 10 | fill in the blank 11 | fill in the blank 12 |
Total variable cost | $fill in the blank 13 | $fill in the blank 14 | ||
Fixed costs: | ||||
Supervisory salaries | $fill in the blank 15 | $fill in the blank 16 | ||
Depreciation of plant and equipment | fill in the blank 17 | fill in the blank 18 | ||
Insurance and property taxes | fill in the blank 19 | fill in the blank 20 | ||
Total fixed cost | $fill in the blank 21 | $fill in the blank 22 | ||
Total factory overhead cost | $fill in the blank 23 | $fill in the blank 24 | ||
Total controllable variances | $fill in the blank 25 | $fill in the blank 26 | ||
Net controllable variance-favorableNet controllable variance-unfavorable | blank | blank | $- Select - | |
Volume variance-favorable:Volume variance-unfavorable: | ||||
Excess hours used over normal at the standard rate for fixed factory overhead | fill in the blank 30 | |||
Total factory overhead cost variance-favorableTotal factory overhead cost variance-unfavorable | $- Select - |
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