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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

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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 use 20,000 hours for production: Variable overhead cost: Indirect factory labor Power and light Indirect materials $46,000 12,000 20,000 Total variable overhead cost $78,000 Fixed overhead cost: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes $54,500 40,000 35,500 Total fixed overhead cost 130,000 $208,000 Total factory overhead cost 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 cost: Indirect factory labor Power and light Indirect materials Total variable cost $49,700 13,000 24,000 $86,700 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: Variable overhead cost: Indirect factory labor Power and light Indirect materials $46,000 12,000 20,000 Total variable overhead cost $78,000 Fixed overhead cost: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes $54,500 40,000 35,500 Total fixed overhead cost 130,000 $208,000 Total factory overhead cost 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 cost: Indirect factory labor Power and light Indirect materials Total variable cost $49,700 13,000 24,000 $86,700

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