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Please Help! Tiger Equipment Incy, a manufacturer of construction equipment, prepared the following factory overtucad cost budget for the Welding Department for May of the
Please Help!
Tiger Equipment Incy, a manufacturer of construction equipment, prepared the following factory overtucad 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 8,000 hours: During May, the department operated at 8,500 standard hours. The factory overhead costs incurred were indirect factory wages, $29,190; pawer and light, $17,530; indirect materials, $14,700; supervisory salaries, $16,010; depreciation of plant and equipment, $41,060; and insurance and property taxes, $12;530. Required: Prepare a factory overhead cost vartance report for May. To be useful for cost control, tho budgeted amounts shouid be based on 8,500 hours, Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per unit computations to the nearest cent, if required. If an amount box does not require an entry, leave it blank. Variable costs: Indirect factory wages Power and light Indirect materials Total variable cost Fixed costs: Supervisory salaries. Depreciation of plant and equipment Insurance and property taxes Total foxed cost Total factory overhead cost Total controliable variances Net contro a able variance-unfavoraba w Yo ume variancefavorablet = Excess hours used over normal at the standard rate foe fixed factory averhead Iotal foctory gwerhead cost yanancefavorabie Step by Step Solution
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