Factory Overhead Cost Variance Report Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 8,400 hours. V Variable costs: Indirect factory wages Power and light Indirect materials $30,240 20,160 16,800 $67,200 Total variable cost Fixed costs: Supervisory salaries $20,000 Depreciation of plant and equipment 36,200 Insurance and property taxes 15,200 Total fixed cost Total factory overhead cost 71,400 $138,600 During May, the department operated at 8,860 hours, and the factory overhead costs incurred were indirect factory wages, $32,400; power and light, $21,000; indirect materials, $18,250; supervisory salaries, $20,000; depreciation of plant and equipment, $36,200; and insurance and property taxes, $15,200. Required: Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,860 hours. 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. Previous ?
Factory Overhead Cost Variance Report Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 8,400 hours. V Variable costs: Indirect factory wages Power and light Indirect materials $30,240 20,160 16,800 $67,200 Total variable cost Fixed costs: Supervisory salaries $20,000 Depreciation of plant and equipment 36,200 Insurance and property taxes 15,200 Total fixed cost Total factory overhead cost 71,400 $138,600 During May, the department operated at 8,860 hours, and the factory overhead costs incurred were indirect factory wages, $32,400; power and light, $21,000; indirect materials, $18,250; supervisory salaries, $20,000; depreciation of plant and equipment, $36,200; and insurance and property taxes, $15,200. Required: Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,860 hours. 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. Previous ?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter9: Evaluating Variances From Standard Costs
Section: Chapter Questions
Problem 4PA: Factory overhead cost variance report Tiger Equipment Inc., a manufacturer of construction...
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Transcribed Image Text:Factory Overhead Cost Variance Report
Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current
year. The company expected to operate the department at 100% of normal capacity of 8,400 hours.
V
Variable costs:
Indirect factory wages
Power and light
Indirect materials
$30,240
20,160
16,800
$67,200
Total variable cost
Fixed costs:
Supervisory salaries
$20,000
Depreciation of plant and equipment
36,200
Insurance and property taxes
15,200
Total fixed cost
Total factory overhead cost
71,400
$138,600
During May, the department operated at 8,860 hours, and the factory overhead costs incurred were indirect factory wages, $32,400; power and light, $21,000; indirect
materials, $18,250; supervisory salaries, $20,000; depreciation of plant and equipment, $36,200; and insurance and property taxes, $15,200.
Required:
Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,860 hours. 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.
Previous
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