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 Power and light Indirect materials Total variable overhead cost Fixed overhead costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed overhead cost Indirect factory labor Power and light Indirect materials Total variable cost $42,000 11,400 21,000 $38,220 10,450 20,600 $69,270 $64,980 17,100 31,920 Total factory overhead cost 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: $74,400 114,000 $188,400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question

Please do not give solution in image format thanku 

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
Power and light
Indirect materials
Total variable overhead cost
Fixed overhead costs:
Supervisory salaries
Depreciation of plant and equipment
Insurance and property taxes
Total fixed overhead cost
Indirect factory labor
Power and light
Indirect materials
Total variable cost
$42,000
11,400
21,000
$38,220
10,450
20,600
$69,270
$64,980
17,100
31,920
Total factory overhead cost
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:
$74,400
114,000
$188,400
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 Power and light Indirect materials Total variable overhead cost Fixed overhead costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed overhead cost Indirect factory labor Power and light Indirect materials Total variable cost $42,000 11,400 21,000 $38,220 10,450 20,600 $69,270 $64,980 17,100 31,920 Total factory overhead cost 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: $74,400 114,000 $188,400
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.
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
Volume variance-unfavorable:
Idle hours at the standard rate for fixed factory overhead
Total factory overhead cost variance-favorable
X
Actual Cost
100000 10000
Budget
Unfavorable (Favorable)
Variances
(at Actual Production) Variances
QOOQ QOOQQI
88
00 00
Transcribed Image Text: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. 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 Volume variance-unfavorable: Idle hours at the standard rate for fixed factory overhead Total factory overhead cost variance-favorable X Actual Cost 100000 10000 Budget Unfavorable (Favorable) Variances (at Actual Production) Variances QOOQ QOOQQI 88 00 00
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education