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 $42,000 11,100 Indirect materials 21,000 Total variable overhead cost $74,100 Fixed overhead costs: Supervisory salaries $60,650 Depreciation of plant and equipment 15,960 Insurance and property taxes 29,790 106,400 $180,500 Total fixed overhead cost 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: Indirect factory labor Power and light Indirect materials Total variable cost $38,220 10,170 20,600 $68,990 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. Productive capacity for the month 19,000 hrs. Actual productive capacity used for the month 14,000 hrs. Tannin Products Inc. Factory Overhead Cost Variance Report-Trim Department Line Item Description Variable factory overhead costs: Indirect factory labor Power and light For the Month Ended July 31 Budget Actual Cost (at Actual Unfavorable Favorable Production) Variances Variances 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 Volume variance-unfavorable: Idle hours at the standard rate for fixed factory overhead
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 $42,000 11,100 Indirect materials 21,000 Total variable overhead cost $74,100 Fixed overhead costs: Supervisory salaries $60,650 Depreciation of plant and equipment 15,960 Insurance and property taxes 29,790 106,400 $180,500 Total fixed overhead cost 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: Indirect factory labor Power and light Indirect materials Total variable cost $38,220 10,170 20,600 $68,990 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. Productive capacity for the month 19,000 hrs. Actual productive capacity used for the month 14,000 hrs. Tannin Products Inc. Factory Overhead Cost Variance Report-Trim Department Line Item Description Variable factory overhead costs: Indirect factory labor Power and light For the Month Ended July 31 Budget Actual Cost (at Actual Unfavorable Favorable Production) Variances Variances 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 Volume variance-unfavorable: Idle hours at the standard rate for fixed factory overhead
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
$42,000
11,100
Indirect materials
21,000
Total variable overhead cost
$74,100
Fixed overhead costs:
Supervisory salaries
$60,650
Depreciation of plant and equipment
15,960
Insurance and property taxes
29,790
106,400
$180,500
Total fixed overhead cost
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:
Indirect factory labor
Power and light
Indirect materials
Total variable cost
$38,220
10,170
20,600
$68,990
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.
Productive capacity for the month 19,000 hrs.
Actual productive capacity used for the month 14,000 hrs.
Tannin Products Inc.
Factory Overhead Cost Variance Report-Trim Department
Line Item Description
Variable factory overhead costs:
Indirect factory labor
Power and light
For the Month Ended July 31
Budget
Actual
Cost
(at Actual Unfavorable Favorable
Production) Variances Variances
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
Volume variance-unfavorable:
Idle hours at the standard rate for fixed factory overhead
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