Tannin Products Inc, prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use $20,000$ hours for production:

Actual variable factory overhead costs:

Productive capacity for the month $25,000hrs.$

Actual productive capacity used for the month $22,000hrs.$

Tannin Products Inc.

Factory Overhead Cost Variance Report$-$Trim Department

For the Month Ended July $31$