Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 15,000 hours for production: Variable overhead costs: Indirect factory labor $37,500 Power and light 10,950 Indirect materials 16,500 Total variable overhead cost $64,950 Fixed overhead costs: Supervisory salaries $60,650 Depreciation of plant and equipment 15,960 Insurance and property taxes 29,790 Total fixed overhead cost 106,400 Total factory overhead cost $171,350 Tannin has available 19,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 14,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead costs: Indirect factory labor $34,130 Power and light 10,040 Indirect materials 16,200 Total variable cost $60,370 Construct a factory overhead cost variance report for the Trim Department for July. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry, leave it blank. Round your interim computations to the nearest cent, if required.
Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 15,000 hours for production: Variable overhead costs: Indirect factory labor $37,500 Power and light 10,950 Indirect materials 16,500 Total variable overhead cost $64,950 Fixed overhead costs: Supervisory salaries $60,650 Depreciation of plant and equipment 15,960 Insurance and property taxes 29,790 Total fixed overhead cost 106,400 Total factory overhead cost $171,350 Tannin has available 19,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 14,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead costs: Indirect factory labor $34,130 Power and light 10,040 Indirect materials 16,200 Total variable cost $60,370 Construct a factory overhead cost variance report for the Trim Department for July. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry, leave it blank. Round your interim computations to the nearest cent, if required.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Performance Eval Variances: Refer to the pictures. Thank you! One picture has the info and the second picture has the template.
Transcribed Image Text:Factory Overhead Cost Variance Report
Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 15,000 hours for production:
Variable overhead costs:
Indirect factory labor
$37,500
Power and light
10,950
Indirect materials
16,500
Total variable overhead cost
$64,950
Fixed overhead costs:
Supervisory salaries
$60,650
Depreciation of plant and equipment
15,960
Insurance and property taxes
29,790
Total fixed overhead cost
106,400
Total factory overhead cost
$171,350
Tannin has available 19,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 14,000 hours for production. The
actual fixed costs were as budgeted. The actual variable overhead for July was as follows:
Actual variable factory overhead costs:
Indirect factory labor
$34,130
Power and light
10,040
Indirect materials
16,200
Total variable cost
$60,370
Construct a factory overhead cost variance report for the Trim Department for July. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an
amount box does not require an entry, leave it blank. Round your interim computations to the nearest cent, if required.
Transcribed Image Text:Construct a factory overhead cost variance report for the Trim Department for July. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an
amount box does not require an entry, leave it blank. Round your interim computations to the nearest cent, if required.
Tannin Products Inc.
Factory Overhead Cost Variance Report-Trim Department
For the Month Ended July 31
Productive capacity for the month 19,000 hrs.
Actual productive capacity used for the month 14,000 hrs.
Budget
(at Actual Production)
Unfavorable
(Favorable)
Actual Cost
Variances
Variances
Variable factory overhead costs:
Indirect factory labor
Power and light
Indirect materials
Total variable factory overhead cost
Fixed factory overhead costs:
Supervisory salaries
Depreciation of plant and equipment
Insurance and property taxes
Total fixed factory overhead cost
Total factory overhead cost
Total controllable variances
Net controllable variance-favorable v
Volume variance-unfavorable:
Idle hours at the standard rate for fixed factory overhead
Total factory overhead cost variance-unfavorable
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education