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 9,000 hours. Variable costs: Indirect factory wages $27,900 Power and light 21,420 Indirect materials 18,720 Total variable cost $68,040 Fixed costs: Supervisory salaries $15,110 Depreciation of plant and equipment 38,760 Insurance and property taxes 11,830 Total fixed cost 65,700 Total factory overhead cost $133,740 During October, the department operated at 9,500 standard hours, and the factory overhead costs incurred were indirect factory wages, $29,740; power and light, $22,200; indirect materials, $20,200; supervisory salaries, $15,110; depreciation of plant and equipment, $38,760; and insurance and property taxes, $11,830. Required: Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 9,500 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 9,000 hrs. Actual production for the month 9,500 hrs. ActualCost Budget(at ActualProduction) UnfavorableVariances FavorableVariances 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 $ $ Net controllable variance-unfavorable Net controllable variance-favorable Net controllable variance-unfavorable $ Volume variance-favorable: Excess hours used over normal at the standard rate for fixed factory overhead Total factory overhead cost variance-favorable Total factory overhead cost variance-unfavorable $

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 9,000 hours. Variable costs: Indirect factory wages $27,900 Power and light 21,420 Indirect materials 18,720 Total variable cost $68,040 Fixed costs: Supervisory salaries $15,110 Depreciation of plant and equipment 38,760 Insurance and property taxes 11,830 Total fixed cost 65,700 Total factory overhead cost $133,740 During October, the department operated at 9,500 standard hours, and the factory overhead costs incurred were indirect factory wages, $29,740; power and light, $22,200; indirect materials, $20,200; supervisory salaries, $15,110; depreciation of plant and equipment, $38,760; and insurance and property taxes, $11,830. Required: Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 9,500 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 9,000 hrs. Actual production for the month 9,500 hrs. ActualCost Budget(at ActualProduction) UnfavorableVariances FavorableVariances 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 $ $ Net controllable variance-unfavorable Net controllable variance-favorable Net controllable variance-unfavorable $ Volume variance-favorable: Excess hours used over normal at the standard rate for fixed factory overhead Total factory overhead cost variance-favorable Total factory overhead cost variance-unfavorable $

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 9,000 hours.

Variable costs:
Indirect factory wages	$27,900
Power and light	21,420
Indirect materials	18,720
Total variable cost		$68,040
Fixed costs:
Supervisory salaries	$15,110
Depreciation of plant and equipment	38,760
Insurance and property taxes	11,830
Total fixed cost		65,700
Total factory overhead cost		$133,740

During October, the department operated at 9,500 standard hours, and the factory overhead costs incurred were indirect factory wages, $29,740; power and light, $22,200; indirect materials, $20,200; supervisory salaries, $15,110; depreciation of plant and equipment, $38,760; and insurance and property taxes, $11,830.

Required:

Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 9,500 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 9,000 hrs.
Actual production for the month 9,500 hrs.
	Actual Cost	Budget (at Actual Production)	Unfavorable Variances	Favorable Variances
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			$	$
Net controllable variance-unfavorable Net controllable variance-favorable Net controllable variance-unfavorable			$
Volume variance-favorable:
Excess hours used over normal at the standard rate for fixed factory overhead
Total factory overhead cost variance-favorable Total factory overhead cost variance-unfavorable			$

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