Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 22,000 hours for production: Variable overhead cost Indirect factory labo Power and Light 1 55,000.00 11,000.00 2000.00 4 Indirect materials Total variable overhead cost 88,000.00 Fixed overhead cost Supervisory salaries Depreciation of plant and equipment Insurance and property taxe 52,600.00 9,400.00 137500.00 Total fixed overhead cost Total factory overhead cost 29,500.00 317,500.00 1 Instructions Tannin has available 27,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 24,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows Actual variable factory overhead cost 2Indirect factory labor 559,140.00 11,760.00 27000.00 97,900.00 Power and light 4Indirect materials s Total variable cost 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 Tannin Products Inc. Factory Overhead Cost Variance Report-Trim Department For the Month Ended July 31 Productive capacity for the month Actual productive capacity used for the month 27,000 hours 24,000 hours Budoget lat actualAcual production) Actual Variances: Variances: Favorable Unfavorable s Variable factory overhead costs Fixed factory overhead costs eBook Calculator Factory Overhead Cost Variance Report 0 Fixed factory overhead costs

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Agile Auditing Transforming The Internal Audit Process

Authors: Rick A. Wright Jr. CIA

1st Edition

1634540689, 978-1634540681

More Books

Students also viewed these Accounting questions

Question

=+ (a) Prove Cantelli's inequality P[X-mzalso2+a2' G2 @0.

Answered: 1 week ago