Factory Overhead Cost Variance Report
Feeling Better Medical Inc., a manufacturer of disposablemedical supplies, prepared the following factory overhead costbudget for the Assembly Department for October of the current year.The company expected to operate the department at 100% of normalcapacity of 6,700 hours.
| Variable costs: | | |
| Indirect factory wages | $20,100 | |
| Power and light | 14,271 | |
| Indirect materials | 12,261 | |
| Total variable cost | | $46,632 |
| Fixed costs: | | |
| Supervisory salaries | $13,560 | |
| Depreciation of plant and equipment | 34,790 | |
| Insurance and property taxes | 10,610 | |
| Total fixed cost | | 58,960 |
| Total factory overhead cost | | $105,592 |
During October, the department operated at 7,100 standard hours,and the factory overhead costs incurred were indirect factorywages, $21,510; power and light, $14,850; indirect materials,$13,300; supervisory salaries, $13,560; depreciation of plant andequipment, $34,790; and insurance and property taxes, $10,610.
Required:
Prepare a factory overhead cost variance report for October. Tobe useful for cost control, the budgeted amounts should be based on7,100 hours. Enter a favorable variance as a negative number usinga 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.
| Feeling Better Medical Inc. |
| Factory Overhead Cost Variance Report—AssemblyDepartment |
| For the Month Ended October 31 |
| Normal capacity for the month 6,700 hrs. | | | | |
| Actual production for the month 7,100 hrs. | | | | |
| Budget | Actual | Favorable Variances | Unfavorable Variances |
| 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 fixedfactory overhead | | | | |
| Total factory overhead cost variance-favorable | | | | $ |
