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 14,000 hours for production: Variable overhead costs:     Indirect factory labor $46,200   Power and light 10,500   Indirect materials 21,000      Total variable overhead cost   $77,700 Fixed overhead costs:     Supervisory salaries $56,430   Depreciation of plant and equipment 14,850   Insurance and property taxes 27,720      Total fixed overhead cost   99,000 Total factory overhead cost   $176,700 Tannin has available 18,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 13,000 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 $41,830 Power and light 9,570 Indirect materials 20,500    Total variable cost $71,900 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.

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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 14,000 hours for production:

Variable overhead costs:    
Indirect factory labor $46,200  
Power and light 10,500  
Indirect materials 21,000  
   Total variable overhead cost   $77,700
Fixed overhead costs:    
Supervisory salaries $56,430  
Depreciation of plant and equipment 14,850  
Insurance and property taxes 27,720  
   Total fixed overhead cost   99,000
Total factory overhead cost   $176,700

Tannin has available 18,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 13,000 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 $41,830
Power and light 9,570
Indirect materials 20,500
   Total variable cost $71,900

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.

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 18,000 hrs.
Actual productive capacity used for the month 13,000 hrs.
Unfavorable (Favorable)
Budget
(at Actual Production)
Actual Cost
Variances
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
Transcribed Image Text: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 18,000 hrs. Actual productive capacity used for the month 13,000 hrs. Unfavorable (Favorable) Budget (at Actual Production) Actual Cost Variances 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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