Construct a factory overhead cost variance report for the Trim Department for July.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 14,000 hours for production:

Variable overhead costs:    
Indirect factory labor $39,200  
Power and light 10,080  
Indirect materials 15,400  
   Total variable overhead cost   $64,680
Fixed overhead costs:    
Supervisory salaries $50,270  
Depreciation of plant and equipment 13,230  
Insurance and property taxes 24,700  
   Total fixed overhead cost   88,200
Total factory overhead cost   $152,880

Tannin has available 18,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 13,000 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 $35,490
Power and light 9,190
Indirect materials 15,000
   Total variable cost $59,680

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 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 18,000 hrs.        
Actual productive capacity used for the month 13,000 hrs.        
  Actual Cost Budget
(at Actual Production)
Unfavorable
Variances
(Favorable)
Variances
Variable factory overhead costs:        
Indirect factory labor $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4
Power and light fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8
Indirect materials fill in the blank 9 fill in the blank 10 fill in the blank 11 fill in the blank 12
Total variable factory overhead cost $fill in the blank 13 $fill in the blank 14    
Fixed factory overhead costs:        
Supervisory salaries $fill in the blank 15 $fill in the blank 16    
Depreciation of plant and equipment fill in the blank 17 fill in the blank 18    
Insurance and property taxes fill in the blank 19 fill in the blank 20    
Total fixed factory overhead cost $fill in the blank 21 $fill in the blank 22    
Total factory overhead cost $fill in the blank 23 $fill in the blank 24    
Total controllable variances     $fill in the blank 25 $fill in the blank 26
      $fill in the blank 28  
Volume variance-unfavorable:        
Idle hours at the standard rate for fixed factory overhead     fill in the blank 29  
 
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