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 24,000 hours for production:

1	Variable overhead cost:
2	Indirect factory labor	$57,600.00
3	Power and light	14,400.00
4	Indirect materials	24,000.00
5	Total variable overhead cost		$96,000.00
6	Fixed overhead cost:
7	Supervisory salaries	$55,000.00
8	Depreciation of plant and equipment	39,200.00
9	Insurance and property taxes	152,300.00
10	Total fixed overhead cost		246,500.00
11	Total factory overhead cost		$342,500.00

Tannin has available 29,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 26,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows:

1	Actual variable factory overhead cost:
2	Indirect factory labor	$61,580.00
3	Power and light	15,300.00
4	Indirect materials	28,300.00
5	Total variable cost	$105,180.00

Required:

Construct a factory overhead cost variance report for the Trim Department for July. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Amount Descriptions
Volume variance-favorable
Volume variance-unfavorable
Depreciation of plant and equipment
Indirect factory labor
Indirect materials
Insurance and property taxes
Net controllable variance-favorable
Net controllable variance-unfavorable
Power and light
Supervisory salaries
Total controllable variances
Total factory overhead cost
Total factory overhead cost variance-favorable
Total factory overhead cost variance-unfavorable
Total fixed factory overhead cost
Total variable factory overhead cost

Construct a factory overhead cost variance report for the Trim Department for July. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Tannin Products Inc.

Factory Overhead Cost Variance ReportTrim Department

For the Month Ended July 31

1	Productive capacity for the month		29,000 hours
2	Actual productive capacity used for the month		26,000 hours
3
4		Budget (at actual production)	Actual	Variances: Favorable	Variances: Unfavorable
5	Variable factory overhead costs:
6
7
8
9
10	Fixed factory overhead costs:
11
12
13
14
15
16
17
18
19
20