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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

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

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