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 8,000 hours for production: Variable overhead cost: Indirect factory labor $24,800 Power and light 6,000 Indirect materials 11,200 Total variable overhead cost $ 42,000 Fixed overhead cost: Supervisory salaries $34,880 Depreciation of plant and equipment 9,180 Insurance and property taxes 17,140 Total fixed overhead cost 61,200 Total factory overhead cost $103,200 Tannin has available 12,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 7,000 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 $21,160 Power and light 5,160 Indirect materials 10,300 Total variable cost $36,620 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 12,000 hrs. Actual productive capacity used for the month 7,000 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 $ $ Net controllable variance-favorable Net controllable variance-unfavorable $ Volume variance-favorable: Volume variance-unfavorable: Idle hours at the standard rate for fixed factory overhead Total factory overhead cost variance-favorable Total factory overhead cost variance-unfavorable

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 8,000 hours for production: Variable overhead cost: Indirect factory labor $24,800 Power and light 6,000 Indirect materials 11,200 Total variable overhead cost $ 42,000 Fixed overhead cost: Supervisory salaries $34,880 Depreciation of plant and equipment 9,180 Insurance and property taxes 17,140 Total fixed overhead cost 61,200 Total factory overhead cost $103,200 Tannin has available 12,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 7,000 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 $21,160 Power and light 5,160 Indirect materials 10,300 Total variable cost $36,620 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 12,000 hrs. Actual productive capacity used for the month 7,000 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 $ $ Net controllable variance-favorable Net controllable variance-unfavorable $ Volume variance-favorable: Volume variance-unfavorable: Idle hours at the standard rate for fixed factory overhead Total factory overhead cost variance-favorable Total factory overhead cost variance-unfavorable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Factory Overhead Cost Variance Report

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 8,000 hours for production:

Variable overhead cost:
Indirect factory labor	$24,800
Power and light	6,000
Indirect materials	11,200
Total variable overhead cost		$ 42,000
Fixed overhead cost:
Supervisory salaries	$34,880
Depreciation of plant and equipment	9,180
Insurance and property taxes	17,140
Total fixed overhead cost		61,200
Total factory overhead cost		$103,200

Tannin has available 12,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 7,000 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	$21,160
Power and light	5,160
Indirect materials	10,300
Total variable cost	$36,620

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 12,000 hrs.
Actual productive capacity used for the month 7,000 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			$	$
Net controllable variance-favorable Net controllable variance-unfavorable				$
Volume variance-favorable: Volume variance-unfavorable:
Idle hours at the standard rate for fixed factory overhead
Total factory overhead cost variance-favorable Total factory overhead cost variance-unfavorable				$

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