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 19,000 hours for production:

1	Variable overhead cost:
2	Indirect factory labor	$39,900.00
3	Power and light	9,500.00
4	Indirect materials	19,000.00
5	Total variable overhead cost		$68,400.00
6	Fixed overhead cost:
7	Supervisory salaries	$54,800.00
8	Depreciation of plant and equipment	39,800.00
9	Insurance and property taxes	121,400.00
10	Total fixed overhead cost		216,000.00
11	Total factory overhead cost		$284,400.00

Tannin has available 24,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 21,000 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	$43,290.00
3	Power and light	10,280.00
4	Indirect materials	23,200.00
5	Total variable cost	$76,770.00

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.

Factory Overhead Cost Variance Report

Shaded cells have feedback.

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.

Score: 102/174

Tannin Products Inc.

Factory Overhead Cost Variance ReportTrim Department

For the Month Ended July 31

1	Productive capacity for the month		24,000 hours
2	Actual productive capacity used for the month		21,000 hours
3
4		Budget (at actual production)	Actual	Variances: Favorable	Variances: Unfavorable
5	Variable factory overhead costs:
6	Indirect factory labor		43290
7	Power and light		10280
8	Indirect materials		23200
9	Total variable factory overhead cost		76770
10	Fixed factory overhead costs:
11	Supervisory salaries		54800
12	Depreciation of plant and equipment		39800
13	Insurance and property taxes		121400
14	Total fixed factory overhead cost		216000
15	Total factory overhead cost
16	Total controllable variances
17
18	Net controllable variance-unfavorable
19	Volume variance-unfavorable
20	Total factory overhead cost variance-unfavorable