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 20,000 hours for production: Variable overhead costs: Indirect factory labor $46,000 Power and light 12,000 Indirect materials 20,000 Total variable overhead cost $78,000 Fixed overhead costs: Supervisory salaries $54,500 Depreciation of plant and equipment 40,000 Insurance and property taxes 35,500 Total fixed overhead cost 130,000 Total factory overhead cost $208,000 Tannin has available 25,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 22,000 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 $49,700 Power and light 13,000 Indirect materials 24,000 Total variable cost $86,700 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 25,000 hrs. Actual productive capacity used for the month 22,000 hrs. Actual Cost Budget (at Actual Production) UnfavorableVariances FavorableVariances 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 $ $ $ 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 20,000 hours for production: Variable overhead costs: Indirect factory labor $46,000 Power and light 12,000 Indirect materials 20,000 Total variable overhead cost $78,000 Fixed overhead costs: Supervisory salaries $54,500 Depreciation of plant and equipment 40,000 Insurance and property taxes 35,500 Total fixed overhead cost 130,000 Total factory overhead cost $208,000 Tannin has available 25,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 22,000 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 $49,700 Power and light 13,000 Indirect materials 24,000 Total variable cost $86,700 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 25,000 hrs. Actual productive capacity used for the month 22,000 hrs. Actual Cost Budget (at Actual Production) UnfavorableVariances FavorableVariances 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 $ $ $ Volume variance - unfavorable: Idle hours at the standard rate for fixed factory overhead $

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

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 20,000 hours for production:

Variable overhead costs:
Indirect factory labor	$46,000
Power and light	12,000
Indirect materials	20,000
Total variable overhead cost		$78,000
Fixed overhead costs:
Supervisory salaries	$54,500
Depreciation of plant and equipment	40,000
Insurance and property taxes	35,500
Total fixed overhead cost		130,000
Total factory overhead cost		$208,000

Tannin has available 25,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 22,000 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	$49,700
Power and light	13,000
Indirect materials	24,000
Total variable cost	$86,700

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 25,000 hrs.
Actual productive capacity used for the month 22,000 hrs.
	Actual Cost	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			$	$
			$
Volume variance - unfavorable:
Idle hours at the standard rate for fixed factory overhead
			$

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