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 17,000 hours for production: Variable overhead cost:         Indirect factory labor $57,800       Power and light 12,240       Indirect materials 27,200         Total variable overhead cost   $ 97,240 Fixed overhead cost:         Supervisory salaries $59,850       Depreciation of plant and equipment 15,750       Insurance and property taxes 29,400         Total fixed overhead cost   105,000 Total factory overhead cost   $202,240 Tannin has available 21,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 16,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead cost:   Indirect factory labor $53,040 Power and light 11,310 Indirect materials 26,900 Total variable cost $91,250 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

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Chapter1: Financial Statements And Business Decisions
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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 17,000 hours for production:

Variable overhead cost:    
    Indirect factory labor $57,800  
    Power and light 12,240  
    Indirect materials 27,200  
      Total variable overhead cost   $ 97,240
Fixed overhead cost:    
    Supervisory salaries $59,850  
    Depreciation of plant and equipment 15,750  
    Insurance and property taxes 29,400  
      Total fixed overhead cost   105,000
Total factory overhead cost   $202,240

Tannin has available 21,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 16,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows:

Actual variable factory overhead cost:  
Indirect factory labor $53,040
Power and light 11,310
Indirect materials 26,900
Total variable cost $91,250

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 21,000 hrs.
Actual productive capacity used for the month 16,000 hrs.
Actual
Budget (at actual production)
Unfavorable Variances
Favorable 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
$
Idle hours at the standard rate for fixed factory overhead
Transcribed Image Text:Tannin Products Inc. Factory Overhead Cost Variance Report-Trim Department For the Month Ended July 31 Productive capacity for the month 21,000 hrs. Actual productive capacity used for the month 16,000 hrs. Actual Budget (at actual production) Unfavorable Variances Favorable 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 $ Idle hours at the standard rate for fixed factory overhead
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