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 24,000 hours for production:

TANNIN PRODUCTS INC.

Factory Overhead Cost BudgetTrim Department

For the Month Ended July 31

1	Variable overhead cost:
2	Indirect factory labor	$57,600.00
3	Power and light	14,400.00
4	Indirect materials	24,000.00
5	Total variable overhead cost		$96,000.00
6	Fixed overhead cost:
7	Supervisory salaries	$55,000.00
8	Depreciation of plant and equipment	39,200.00
9	Insurance and property taxes	152,300.00
10	Total fixed overhead cost		246,500.00
11	Total factory overhead cost		$342,500.00

Tannin has available 29,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 26,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows:

1	Actual variable factory overhead cost:
2	Indirect factory labor	$61,580.00
3	Power and light	15,300.00
4	Indirect materials	28,300.00
5	Total variable cost	$105,180.00

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 favorable variances as negative amounts.

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 favorable variances as negative amounts.

TANNIN PRODUCTS INC.

Factory Overhead Cost Variance ReportTrim Department

For the Month Ended July 31

1	Productive capacity for the month		29,000 hours
2	Actual production for the month		26,000 hours
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4		Budget (at Actual Production)	Actual	Variances: Favorable	Variances: Unfavorable
5	Variable factory overhead costs:
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10	Fixed factory overhead costs:
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