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Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding DepartmeRE OF HY year. The company expected to operate the department at 100% of normal capacity of 8,200 hours. Variable costs: Indirect factory wages Power and light Indirect materials Total variable cost Fixed costs: $24,600 17,056 13,776 $14,150 36,290 11,060 Normal capacity for the month 8,200 hrs Actual production for the month 8,700 hrs. $55,432 Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed cost Total factory overhead cost During May, the department operated at 8,700 standard hours. The factory overhead costs incurred were indirect factory wages, $26,360; power and light, $17,770. indirect materials, $14,900; supervisory salaries, $14,150; depreciation of plant and equipment, $36,290, and insurance and property taxes, $11,060. 61,500 $116,932 Required: Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,700 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per unit computations to the nearest cent, if required. If an amount box does not require an entry, leave it blank. Tiger Equipment Inc. Factory Overhead Cost Variance Report-Welding Department For the Month Ended May 31 Actual Budget Unfavorable Variances Favorable Variances

Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding DepartmeRE OF HY year. The company expected to operate the department at 100% of normal capacity of 8,200 hours. Variable costs: Indirect factory wages Power and light Indirect materials Total variable cost Fixed costs: $24,600 17,056 13,776 $14,150 36,290 11,060 Normal capacity for the month 8,200 hrs Actual production for the month 8,700 hrs. $55,432 Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed cost Total factory overhead cost During May, the department operated at 8,700 standard hours. The factory overhead costs incurred were indirect factory wages, $26,360; power and light, $17,770. indirect materials, $14,900; supervisory salaries, $14,150; depreciation of plant and equipment, $36,290, and insurance and property taxes, $11,060. 61,500 $116,932 Required: Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,700 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per unit computations to the nearest cent, if required. If an amount box does not require an entry, leave it blank. Tiger Equipment Inc. Factory Overhead Cost Variance Report-Welding Department For the Month Ended May 31 Actual Budget Unfavorable Variances Favorable Variances

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 8,200 hours. Variable costs: Indirect factory wages Power and light Indirect materials Total variable cost Fixed costs: $24,600 17,056 13,776 $14,150 36,290 11,060 Normal capacity for the month 8,200 hrs Actual production for the month 8,700 hrs. $55,432 Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed cost Total factory overhead cost During May, the department operated at 8,700 standard hours. The factory overhead costs incurred were indirect factory wages, $26,360; power and light, $17,770. and property taxes, $11,060. indirect materials, $14.900; supervisory salaries, $14,150; depreciation of plant and equipment, $36,290; and insura 61,500 $116,932 Required: Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,700 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per unit computations to the nearest cent, if required. If an amount box does not require an entry, leave it blank. Tiger Equipment Inc. Factory Overhead Cost Variance Report-Welding Department For the Month Ended May 31 Actual Budget Unfavorable Variances Favorable Variances, Previous Next
Transcribed Image Text:Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 8,200 hours. Variable costs: Indirect factory wages Power and light Indirect materials Total variable cost Fixed costs: $24,600 17,056 13,776 $14,150 36,290 11,060 Normal capacity for the month 8,200 hrs Actual production for the month 8,700 hrs. $55,432 Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed cost Total factory overhead cost During May, the department operated at 8,700 standard hours. The factory overhead costs incurred were indirect factory wages, $26,360; power and light, $17,770. and property taxes, $11,060. indirect materials, $14.900; supervisory salaries, $14,150; depreciation of plant and equipment, $36,290; and insura 61,500 $116,932 Required: Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,700 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per unit computations to the nearest cent, if required. If an amount box does not require an entry, leave it blank. Tiger Equipment Inc. Factory Overhead Cost Variance Report-Welding Department For the Month Ended May 31 Actual Budget Unfavorable Variances Favorable Variances, Previous Next
Normal capacity for the month 8,200 hrs. Actual production for the month 8,700 hrs Variable costs: Indirect factory wages Power and light Indirect materials Total variable cost Fixed costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed cost Total factory overhead cost Total controllable variances Net controllable variance-unfavorable Volume variance favorable Excess hours used over normal at the standard rate for fixed factory overhead Total factory overhead cost vanance favorable Feedback Check My Work Factory Overhead Cost Variance Report-Welding Department For the Month Ended May 31 Ek My Work Actual Budget Unfavorable Variances Favorable Variances 000 QO00 00000 00 Previous Next PREP
Transcribed Image Text:Normal capacity for the month 8,200 hrs. Actual production for the month 8,700 hrs Variable costs: Indirect factory wages Power and light Indirect materials Total variable cost Fixed costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed cost Total factory overhead cost Total controllable variances Net controllable variance-unfavorable Volume variance favorable Excess hours used over normal at the standard rate for fixed factory overhead Total factory overhead cost vanance favorable Feedback Check My Work Factory Overhead Cost Variance Report-Welding Department For the Month Ended May 31 Ek My Work Actual Budget Unfavorable Variances Favorable Variances 000 QO00 00000 00 Previous Next PREP
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