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 Power and light $46,000 12,000 Indirect materials 20,000 Total variable overhead cost $78,000 Fixed overhead costs: Supervisory salaries $54,500 Depreciation of plant and equipment Insurance and property taxes 40,000 35,500 Total fixed overhead cost 130,000 $208,000 Total factory overhead cost 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 Power and light Indirect materials Total variable cost $49,700 13,000 24,000 $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. Productive capacity for the month 25,000 hrs. Actual productive capacity used for the month 22,000 hrs. Tannin Products Inc. Factory Overhead Cost Variance Report-Trim Department Line Item Description Variable factory overhead costs: Indirect factory labor Power and light Indirect materials For the Month Ended July 31 Actual Cost 49,700✔ 13,000 ✔ 24,000 ✔ 86,700 Budget (at Actual Unfavorable Favorable Production) Variances Variances Total variable factory overhead cost Fixed factory overhead costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes $ 54,500 54,500 40,000 ✔ 40,000 35,500 ✓ 35,500 Total fixed factory overhead cost 130,000 ✓ 130,000 Total factory overhead cost 216,700 ✔ 198,640 X Total controllable variances Net controllable variance-unfavorable Volume variance - unfavorable: Idle hours at the standard rate for fixed factory overhead Total factory overhead cost variance-unfavorable ÖÖ O x