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 7,100 hours. Variable costs: Indirect factory wages Power and light Indirect materials $24,140 13,490 10,650 $48,280 Total variable cost Fixed costs: Supervisory salaries $13,060 Depreciation of plant and equipment 33,510 Insurance and property taxes 10,230 Total fixed cost Total factory overhead cost 56,800 $56,800 During October, the department operated at 7,500 standard hours, and the factory overhead costs incurred were indirect factory wages, $25,760; power and light, $13,990; indirect materials, $11,500; supervisory salaries, $13,060; depreciation of plant and equipment, $33,510; and insurance and property taxes, $10,230. Required: Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 7,500 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. Normal capacity for the month 7,100 hrs. Actual production for the month 7,500 hrs. Feeling Better Medical Inc. Factory Overhead Cost Variance Report-Assembly Department For the Month Ended October 31 Line Item Description 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 Budget Actual Cost (at Actual Unfavorable Production) Variances Favorable Variances Volume variance-favorable: Excess hours used over normal at the standard rate for fixed factory overhead QOO 100 00
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 7,100 hours. Variable costs: Indirect factory wages Power and light Indirect materials $24,140 13,490 10,650 $48,280 Total variable cost Fixed costs: Supervisory salaries $13,060 Depreciation of plant and equipment 33,510 Insurance and property taxes 10,230 Total fixed cost Total factory overhead cost 56,800 $56,800 During October, the department operated at 7,500 standard hours, and the factory overhead costs incurred were indirect factory wages, $25,760; power and light, $13,990; indirect materials, $11,500; supervisory salaries, $13,060; depreciation of plant and equipment, $33,510; and insurance and property taxes, $10,230. Required: Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 7,500 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. Normal capacity for the month 7,100 hrs. Actual production for the month 7,500 hrs. Feeling Better Medical Inc. Factory Overhead Cost Variance Report-Assembly Department For the Month Ended October 31 Line Item Description 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 Budget Actual Cost (at Actual Unfavorable Production) Variances Favorable Variances Volume variance-favorable: Excess hours used over normal at the standard rate for fixed factory overhead QOO 100 00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 7,100 hours.
Variable costs:
Indirect factory wages
Power and light
Indirect materials
$24,140
13,490
10,650
$48,280
Total variable cost
Fixed costs:
Supervisory salaries
$13,060
Depreciation of plant and equipment
33,510
Insurance and property taxes
10,230
Total fixed cost
Total factory overhead cost
56,800
$56,800
During October, the department operated at 7,500 standard hours, and the factory overhead costs incurred were indirect factory wages, $25,760; power
and light, $13,990; indirect materials, $11,500; supervisory salaries, $13,060; depreciation of plant and equipment, $33,510; and insurance and
property taxes, $10,230.
Required:
Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 7,500 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.
Normal capacity for the month 7,100 hrs.
Actual production for the month 7,500 hrs.
Feeling Better Medical Inc.
Factory Overhead Cost Variance Report-Assembly Department
For the Month Ended October 31
Line Item Description
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
Budget
Actual
Cost
(at Actual Unfavorable
Production) Variances
Favorable
Variances
Volume variance-favorable:
Excess hours used over normal at the standard rate for fixed factory overhead
QOO
100 00
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