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 7,400 hours. Variable costs: Indirect factory wages $22,940 Power and light 15,466 Indirect materials 13,246 Total variable cost $51,652 Fixed costs: Supervisory salaries $14,470 Depreciation of plant and equipment 37,110 Insurance and property taxes 11,320 Total fixed cost 62,900 Total factory overhead cost $114,552 During October, the department operated at 7,800 standard hours. The factory overhead costs incurred were indirect factory wages, $24,420; power and light, $16,010; indirect materials, $14,200; supervisory salaries, $14,470; depreciation of plant and equipment, $37,110; and insurance and property taxes, $11,320. Required: Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 7,800 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 Ending October 31 Productive capacity for the month 7,400 hrs. Actual production for the month 7,800 hrs. Actual Budget Unfavorable Variances Favorable Variances Variable factory overhead costs: Indirect factory wages $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 Excess hours used over normal at the standard rate for fixed factory overhead fill in the blank 30 $fill in the blank 32

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 7,400 hours. Variable costs: Indirect factory wages $22,940 Power and light 15,466 Indirect materials 13,246 Total variable cost $51,652 Fixed costs: Supervisory salaries $14,470 Depreciation of plant and equipment 37,110 Insurance and property taxes 11,320 Total fixed cost 62,900 Total factory overhead cost $114,552 During October, the department operated at 7,800 standard hours. The factory overhead costs incurred were indirect factory wages, $24,420; power and light, $16,010; indirect materials, $14,200; supervisory salaries, $14,470; depreciation of plant and equipment, $37,110; and insurance and property taxes, $11,320. Required: Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 7,800 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 Ending October 31 Productive capacity for the month 7,400 hrs. Actual production for the month 7,800 hrs. Actual Budget Unfavorable Variances Favorable Variances Variable factory overhead costs: Indirect factory wages $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 Excess hours used over normal at the standard rate for fixed factory overhead fill in the blank 30 $fill in the blank 32

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

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 7,400 hours.

Variable costs:
Indirect factory wages	$22,940
Power and light	15,466
Indirect materials	13,246
Total variable cost		$51,652
Fixed costs:
Supervisory salaries	$14,470
Depreciation of plant and equipment	37,110
Insurance and property taxes	11,320
Total fixed cost		62,900
Total factory overhead cost		$114,552

During October, the department operated at 7,800 standard hours. The factory overhead costs incurred were indirect factory wages, $24,420; power and light, $16,010; indirect materials, $14,200; supervisory salaries, $14,470; depreciation of plant and equipment, $37,110; and insurance and property taxes, $11,320.

Required:

Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 7,800 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 Ending October 31
Productive capacity for the month 7,400 hrs.
Actual production for the month 7,800 hrs.
	Actual	Budget	Unfavorable Variances	Favorable Variances
Variable factory overhead costs:
Indirect factory wages	$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

Excess hours used over normal at the standard rate for fixed factory overhead				fill in the blank 30
				$fill in the blank 32

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

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