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 18,000 hours for production: Variable overhead costs: Indirect factory labor $43,200 Power and light 13,320 Indirect materials 25,200 Total variable overhead cost $81,720 Fixed overhead costs: Supervisory salaries $66,460 Depreciation of plant and equipment 17,490 Insurance and property taxes 32,650 Total fixed overhead cost 116,600 Total factory overhead cost $198,320 Tannin has available 22,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 17,000 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 $39,780 Power and light 12,350 Indirect materials 25,000 Total variable cost $77,130 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 22,000 hrs. Actual productive capacity used for the month 17,000 hrs.
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 18,000 hours for production: Variable overhead costs: Indirect factory labor $43,200 Power and light 13,320 Indirect materials 25,200 Total variable overhead cost $81,720 Fixed overhead costs: Supervisory salaries $66,460 Depreciation of plant and equipment 17,490 Insurance and property taxes 32,650 Total fixed overhead cost 116,600 Total factory overhead cost $198,320 Tannin has available 22,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 17,000 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 $39,780 Power and light 12,350 Indirect materials 25,000 Total variable cost $77,130 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 22,000 hrs. Actual productive capacity used for the month 17,000 hrs.
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 18,000 hours for production: Variable overhead costs: Indirect factory labor $43,200 Power and light 13,320 Indirect materials 25,200 Total variable overhead cost $81,720 Fixed overhead costs: Supervisory salaries $66,460 Depreciation of plant and equipment 17,490 Insurance and property taxes 32,650 Total fixed overhead cost 116,600 Total factory overhead cost $198,320 Tannin has available 22,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 17,000 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 $39,780 Power and light 12,350 Indirect materials 25,000 Total variable cost $77,130 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 22,000 hrs. Actual productive capacity used for the month 17,000 hrs.
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 18,000 hours for production:
Variable overhead costs:
Indirect factory labor
$43,200
Power and light
13,320
Indirect materials
25,200
Total variable overhead cost
$81,720
Fixed overhead costs:
Supervisory salaries
$66,460
Depreciation of plant and equipment
17,490
Insurance and property taxes
32,650
Total fixed overhead cost
116,600
Total factory overhead cost
$198,320
Tannin has available 22,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 17,000 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
$39,780
Power and light
12,350
Indirect materials
25,000
Total variable cost
$77,130
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 22,000 hrs. Actual productive capacity used for the month 17,000 hrs.
Transcribed Image Text: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
Actual Cost
Budget
(at Actual Production)
Unfavorable (Favorable)
Variances Variances
88
Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video
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