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 8,000 hours for production:

Variable overhead costs:
Indirect factory labor	$24,000
Power and light	5,760
Indirect materials	13,600
Total variable overhead cost		$ 43,360
Fixed overhead costs:
Supervisory salaries	$36,940
Depreciation of plant and equipment	9,720
Insurance and property taxes	18,140
Total fixed overhead cost		64,800
Total factory overhead cost		$108,160

Tannin has available 12,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 7,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows:

Actual variable factory overhead costs:
Indirect factory labor	$20,480
Power and light	4,950
Indirect materials	12,500
Total variable cost	$37,930

Tannin Products Inc.

Factory Overhead Cost Variance Report-Trim Department

For the Month Ended July 31

Productive capacity for the month 12,000 hrs.

Actual productive capacity used for the month 7,000 hrs.

Budget (at actual production)	Actual	Favorable Variances	Unfavorable Variances
Variable factory overhead costs:
Indirect factory labor	$	$	$
Power and light
Indirect materials				$
Total variable factory overhead cost	$	$
Fixed factory overhead costs:
Supervisory salaries	$	$
Depreciation of plant and equipment
Insurance and property taxes
Total fixed factory overhead cost	$	$
Total factory overhead cost	$	$
Total controllable variances			$	$
Net controllable variance-favorable				$
Volume variance-unfavorable
Idle hours at the standard rate for fixed factory overhead
Total factory overhead cost variance-unfavorable