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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