Question Content Area 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 8,100 hours Variable costs Indirect factory wages $25,920 Power and light 14,580 Indirect materials 11,340 Total variable cost $51,840 Fixed costs Supervisory salaries $14,720 Depreciation of plant and equipment 37,750 Insurance and property taxes 11,520 Total fixed cost 63,990 Total factory overhead cost $115,830 During October, the department operated at 8,600 standard hours, and the factory overhead costs incurred were indirect factory wages, $27,800 power and light, $15,200 indirect materials, $12,300 supervisory salaries, $14,720 depreciation of plant and equipment, $37,750 and insurance and property taxes, $11,520 Required Prepare a factory overhead cost variance report for October To be useful for cost control, the budgeted amounts should be based on 8,600 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 8,100 hrs Actual production for the month 8,600 hrs Actual Cost Budget (at Actual Production) Unfavorable Variances Favorable Variances Variable factory overhead 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 factory overhead 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 blank Volume variance favorable Excess hours used over normal at the standard rate for fixed factory overhead blank blank fill in the blank 29 blank Total factory overhead cost variance favorable Total factory overhead cost variance unfavorable blank blank $ Select blank

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 09, 2024

Question Content Area Factory Overhead Cost Variance Report Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget

Question Content Area

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 8,100 hours.

Variable costs:
Indirect factory wages	$25,920
Power and light	14,580
Indirect materials	11,340
Total variable cost		$51,840
Fixed costs:
Supervisory salaries	$14,720
Depreciation of plant and equipment	37,750
Insurance and property taxes	11,520
Total fixed cost		63,990
Total factory overhead cost		$115,830

During October, the department operated at 8,600 standard hours, and the factory overhead costs incurred were indirect factory wages, $27,800; power and light, $15,200; indirect materials, $12,300; supervisory salaries, $14,720; depreciation of plant and equipment, $37,750; and insurance and property taxes, $11,520.

Required:

Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 8,600 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 8,100 hrs.
Actual production for the month 8,600 hrs.
	Actual Cost	Budget (at Actual Production)	Unfavorable Variances	Favorable Variances
Variable factory overhead 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 factory overhead 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 -	blank
Volume variance-favorable:
Excess hours used over normal at the standard rate for fixed factory overhead	blank	blank	fill in the blank 29	blank
Total factory overhead cost variance-favorable Total factory overhead cost variance-unfavorable	blank	blank	$- Select -	blank