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
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 11,000 hours for production: Variable overhead costs: Indirect factory labor Power and light $34,100 8,250 15,400 Indirect materials $ 57,750 Total variable overhead cost Fixed overhead costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes $47,020 12,380 23,100 82,500 9 $140.2 Total fixed overhead cost Total factory overhead cost Tannin has available 15,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 10,000 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 Power and light $30,230 7,370 14,700 Indirect materials Total variable cost $52,300 Tannin Products Inc. Construct a factory overhead cost variance report for the Trim Department for July. Enter all amounts as positive numbers. If an amount box does not require an entry, leave it blank. Round your interim computations to the nearest cent, if required. Tannin Products Inc. Factory Overhead Cost Variance Report-Trim Department For the Month Ended July 31 Productive capacity for the month 15,000 hrs. Actual productive capacity used for the month 10,000 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 Dom ID Total factory overhead cost Total controllable variances Idle hours at the standard rate for fixed factory overhead

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_2

Step: 3

blur-text-image_3

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

The Audit Process Principles Practice And Cases

Authors: Stuart Manson, Iain Gray, Iain G. Sheffield, I.H. Gray, I. Etal Gray

2nd Edition

1861520107, 9781861520104

More Books

Students also viewed these Accounting questions

Question

1. Discuss the four components of language.

Answered: 1 week ago

Question

f. What stereotypes were reinforced in the commercials?

Answered: 1 week ago