Factory overhead cost variance report please help me fix what is wrong from the pictures. I have some of it correct but I need help with fixing it. Feeling better medical inc., a manufactur 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 7500 hours. Variable costs: Indirect factory wages $23250 Power and light. 15225 Indirect materials. 12225 Total variable cost. $50700 Fixed costs: Supervisory salaries. $15350 Depreciation of plant and equipment. 39380 Insurance and property taxes 12020 total fixed cost. 66750 total factory overhead cost. $ 117450 During October, the department operated at 8000 standard hours, and the factory overhead costs incurred were Indirect factory wages, $25050; power and light, $15950; indirect materials, $13300; supervisory salaries, $15350; depreciation of plant and equipment, $39380; and insurance and property taxes, $12,020. required: Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 8000 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
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
please help me fix what is wrong from the pictures. I have some of it correct but I need help with fixing it.
Feeling better medical inc., a manufactur 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 7500 hours.
Variable costs:
Indirect factory wages $23250
Power and light. 15225
Indirect materials. 12225
Total variable cost. $50700
Fixed costs:
Supervisory salaries. $15350
Insurance and property taxes 12020
total fixed cost. 66750
total factory overhead cost. $ 117450
During October, the department operated at 8000 standard hours, and the factory overhead costs incurred were Indirect factory wages, $25050; power and light, $15950; indirect materials, $13300; supervisory salaries, $15350; depreciation of plant and equipment, $39380; and insurance and property taxes, $12,020.
required:
Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 8000 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
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