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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 hours for production:
Line Item Description Amount Amount
Variable overhead costs:
Indirect factory labor $
Power and light
Indirect materials
Total variable overhead cost $
Fixed overhead costs:
Supervisory salaries $
Depreciation of plant and equipment
Insurance and property taxes
Total fixed overhead cost
Total factory overhead cost $
Tannin has available hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 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 $
Power and light
Indirect materials
Total variable cost $
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 hrs
Actual productive capacity used for the month hrs
Tannin Products Inc.
Factory Overhead Cost Variance ReportTrim Department
For the Month Ended July
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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