Factory Overhead Cost Variance Report Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October of the current year. The company expected to operate the department at 100% of normal capacity of 7,300 hours. Variable costs: Indirect factory wages $24,090 Power and light 14,235 Indirect materials 11,315 Total variable cost $49,640 Fixed costs: Supervisory salaries $14,100 Depreciation of plant and equipment 36,180 Insurance and property taxes 11,040 Total fixed cost 61,320 $110,960 Total factory overhead cost During October, the department operated at 7,700 standard hours, and the factory overhead costs incurred were indirect factory wages, $25,660; power and light, $14,740; indirect materials, $12,200; supervisory salaries, $14,100; depreciation of plant and equipment, $36,180; and insurance and property taxes, $11,040. Required: Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 7,700 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per unit computations to the nearest cent, if required. If an amount box does not require an entry, leave it blank. Feeling Better Medical Inc. Factory Overhead Cost Variance Report-Assembly Department For the Month Ended October 31 Normal capacity for the month 7,300 hrs. Actual production for the month 7,700 hrs. Budget (at Actual Production) Unfavorable Favorable Actual Variances Variances Cost Variable factory overhead costs: Indirect factory wages Power and light Indirect materials Total variable cost Fixed factory overhead costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed cost Total factory overhead cost Total controllable variances Volume variance-favorable: Excess hours used over normal at the standard rate for fixed factory overhead

Factory Overhead Cost Variance Report Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October of the current year. The company expected to operate the department at 100% of normal capacity of 7,300 hours. Variable costs: Indirect factory wages $24,090 Power and light 14,235 Indirect materials 11,315 Total variable cost $49,640 Fixed costs: Supervisory salaries $14,100 Depreciation of plant and equipment 36,180 Insurance and property taxes 11,040 Total fixed cost 61,320 $110,960 Total factory overhead cost During October, the department operated at 7,700 standard hours, and the factory overhead costs incurred were indirect factory wages, $25,660; power and light, $14,740; indirect materials, $12,200; supervisory salaries, $14,100; depreciation of plant and equipment, $36,180; and insurance and property taxes, $11,040. Required: Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 7,700 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per unit computations to the nearest cent, if required. If an amount box does not require an entry, leave it blank. Feeling Better Medical Inc. Factory Overhead Cost Variance Report-Assembly Department For the Month Ended October 31 Normal capacity for the month 7,300 hrs. Actual production for the month 7,700 hrs. Budget (at Actual Production) Unfavorable Favorable Actual Variances Variances Cost Variable factory overhead costs: Indirect factory wages Power and light Indirect materials Total variable cost Fixed factory overhead costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed cost Total factory overhead cost Total controllable variances Volume variance-favorable: Excess hours used over normal at the standard rate for fixed factory overhead

Name: Feeling Better Medical Inc., a manufacturer of disposable medical supp
Uploaded: 2024-03-20T06:33:06.000Z
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Description: Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October of the current year. The company expected to operate the department at 100% of nor

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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