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PR 23-4B Factory overhead cost variance report OBJ. 4 Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost
PR 23-4B Factory overhead cost variance report OBJ. 4 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. Variable costs: Indirect factory wages $247,500 Power and light 189,000 Indirect materials 52,500 Total variable cost $489,000 Fixed costs: Supervisory salaries $126,000 Depreciation of plant and equipment 70,000 Insurance and property taxes 44,000 Total fixed cost 240,000 Total factory overhead cost $729,000 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. Factory Guest FEELING BETTER MEDICAL, INC. For the Most Ended October 21 Naral caguacty la Be farth 30,000 Actualproduction bor hu month varasset Variable cess. $ 235 125 Balance for Anout Produced Variable Dur 12.009 Variance Crest Veraton
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