Factory Overhead Cost Variance Report Tannin Products Inc Prepared The Following Factory Overhead Cost Budget For The T 1 (159.48 KiB) Viewed 43 times
Factory Overhead Cost Variance Report 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 18,000 hours for production: Variable overhead costs: Indirect factory labor $57,600 13,680 Power and light Indirect materials 25,200 Total variable overhead cost $96,480 Fixed overhead costs: Supervisory salaries $68,970 Depreciation of plant and equipment 18,150 33,880 Insurance and property taxes Total fixed overhead cost 121,000 $217,480 Total factory overhead cost Tannin has available 22,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 17,000 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 $53,040 Power and light 12,690 Indirect materials 25,000 Total variable cost $90,730 Construct a factory overhead cost variance report for the Trim Department for July. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry, leave it blank. Round your interim computations the nearest cent, if required.
Tannin Products Inc. Factory Overhead Cost Variance Report-Trim Department For the Month Ended July 31 Budget Actual Cost Unfavorable (Favorable) (at Actual Production) Variances Variances Productive capacity for the month 22,000 hrs. Actual productive capacity used for the month 17,000 hrs. 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 100000 Good googla
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