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:

Line Item Description Amount Amount

Variable overhead costs:

Indirect factory labor $$46,000$

Power and light $12,000$

Indirect materials $20,000$

Total variable overhead cost $$78,000$

Fixed overhead costs:

Supervisory salaries $$54,500$

Depreciation of plant and equipment $40,000$

Insurance and property taxes $35,500$

Total fixed overhead cost $130,000$

Total factory overhead cost $$208,000$

Tannin has available $25,000$ hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used $22,000$ hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows:

Actual variable factory overhead costs:

Line Item Description Amount

Indirect factory labor $$49,700$

Power and light $13,000$

Indirect materials $24,000$

Total variable cost $$86,700$

Construct a factory overhead cost variance report for the Trim Department for July. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry, leave it blank. Round your interim computations to the nearest cent, if required.

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

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

Tannin Products Inc.

Factory Overhead Cost Variance Report$-$Trim Department

For the Month Ended July $31$

Line Item Description

Actual

Cost Budget

$($at Actual

Production$)$

Unfavorable

Variances

Favorable

Variances

Variable factory overhead costs:

Indirect factory labor $Indirect factory labor

$Indirect factory labor

$Indirect factory labor

$Indirect factory labor

Power and light Power and light

Power and light

Power and light

Power and light

Indirect materials Indirect materials

Indirect materials

Indirect materials

Indirect materials

Total variable factory overhead cost $Total variable factory overhead cost

$Total variable factory overhead cost

Fixed factory overhead costs:

Supervisory salaries $Supervisory salaries

$Supervisory salaries

Depreciation of plant and equipment Depreciation of plant and equipment

Depreciation of plant and equipment

Insurance and property taxes Insurance and property taxes

Insurance and property taxes

Total fixed factory overhead cost $Total fixed factory overhead cost

$Total fixed factory overhead cost

Total factory overhead cost $Total factory overhead cost

$Total factory overhead cost

Total controllable variances $Total controllable variances

$Total controllable variances

blank blank $$-$ Select $-$

blank

Volume variance $-$ unfavorable: blank blank blank blank

Idle hours at the standard rate for fixed factory overhead blank blank Idle hours at the standard rate for fixed factory overhead

blank