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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 8,800 hours. Variable costs: Indirect factory wages Power and light Indirect materials $27,280 16,368 13,728 Total variable cost $57,376 Fixed costs: Supervisory salaries $17,810 Depreciation of plant and equipment 45,690 Insurance and property taxes 13,940 Total fixed cost Total factory overhead cost 77,440 $134,816 During October, the department operated at 9,300 standard hours, and the factory overhead costs incurred were indirect factory wages, $29,120; power and light, $16,990; indirect materials, $14,800; supervisory salaries, $17,810; depreciation of plant and equipment, $45,690; and insurance and property taxes, $13,940. Required: Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 9,300 hours. Enter a favorable variance as a negative number using 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. Normal capacity for the month 8,800 hrs. Actual production for the month 9,300 hrs. Feeling Better Medical Inc. Factory Overhead Cost Variance Report-Assembly Department For the Month Ended October 31 Line Item Description 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 Budget Actual Cost (at Actual Unfavorable Production) Variances Favorable Variances Volume variance-favorable: Excess hours used over normal at the standard rate for fixed factory overhead 吕 QQ ☐☐ $ $

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 8,800 hours. Variable costs: Indirect factory wages Power and light Indirect materials $27,280 16,368 13,728 Total variable cost $57,376 Fixed costs: Supervisory salaries $17,810 Depreciation of plant and equipment 45,690 Insurance and property taxes 13,940 Total fixed cost Total factory overhead cost 77,440 $134,816 During October, the department operated at 9,300 standard hours, and the factory overhead costs incurred were indirect factory wages, $29,120; power and light, $16,990; indirect materials, $14,800; supervisory salaries, $17,810; depreciation of plant and equipment, $45,690; and insurance and property taxes, $13,940. Required: Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 9,300 hours. Enter a favorable variance as a negative number using 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. Normal capacity for the month 8,800 hrs. Actual production for the month 9,300 hrs. Feeling Better Medical Inc. Factory Overhead Cost Variance Report-Assembly Department For the Month Ended October 31 Line Item Description 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 Budget Actual Cost (at Actual Unfavorable Production) Variances Favorable Variances Volume variance-favorable: Excess hours used over normal at the standard rate for fixed factory overhead 吕 QQ ☐☐ $ $

Financial And Managerial Accounting
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter23: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 4PB: Factory overhead cost variance report Feeling Better Medical Inc., a manufacturer of disposable...
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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 8,800 hours. Variable costs: Indirect factory wages Power and light Indirect materials $27,280 16,368 13,728 Total variable cost $57,376 Fixed costs: Supervisory salaries $17,810 Depreciation of plant and equipment 45,690 Insurance and property taxes 13,940 Total fixed cost Total factory overhead cost 77,440 $134,816 During October, the department operated at 9,300 standard hours, and the factory overhead costs incurred were indirect factory wages, $29,120; power and light, $16,990; indirect materials, $14,800; supervisory salaries, $17,810; depreciation of plant and equipment, $45,690; and insurance and property taxes, $13,940. Required: Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 9,300 hours. Enter a favorable variance as a negative number using 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. Normal capacity for the month 8,800 hrs. Actual production for the month 9,300 hrs. Feeling Better Medical Inc. Factory Overhead Cost Variance Report-Assembly Department For the Month Ended October 31 Line Item Description 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 Budget Actual Cost (at Actual Unfavorable Production) Variances Favorable Variances Volume variance-favorable: Excess hours used over normal at the standard rate for fixed factory overhead 吕 QQ ☐☐ $ $
Transcribed Image Text: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 8,800 hours. Variable costs: Indirect factory wages Power and light Indirect materials $27,280 16,368 13,728 Total variable cost $57,376 Fixed costs: Supervisory salaries $17,810 Depreciation of plant and equipment 45,690 Insurance and property taxes 13,940 Total fixed cost Total factory overhead cost 77,440 $134,816 During October, the department operated at 9,300 standard hours, and the factory overhead costs incurred were indirect factory wages, $29,120; power and light, $16,990; indirect materials, $14,800; supervisory salaries, $17,810; depreciation of plant and equipment, $45,690; and insurance and property taxes, $13,940. Required: Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 9,300 hours. Enter a favorable variance as a negative number using 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. Normal capacity for the month 8,800 hrs. Actual production for the month 9,300 hrs. Feeling Better Medical Inc. Factory Overhead Cost Variance Report-Assembly Department For the Month Ended October 31 Line Item Description 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 Budget Actual Cost (at Actual Unfavorable Production) Variances Favorable Variances Volume variance-favorable: Excess hours used over normal at the standard rate for fixed factory overhead 吕 QQ ☐☐ $ $
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