Factory Overhead Cost Variance Report
Tannin Products Inc. prepared the following factory overheadcost budget for the Trim Department for July of the current year,during which it expected to use 12,000 hours for production:
| Variable overhead costs: | | |
| Indirect factory labor | $39,600 | |
| Power and light | 9,120 | |
| Indirect materials | 16,800 | |
| Total variable overhead cost | | $ 65,520 |
| Fixed overhead costs: | | |
| Supervisory salaries | $45,600 | |
| Depreciation of plant and equipment | 12,000 | |
| Insurance and property taxes | 22,400 | |
| Total fixed overhead cost | | 80,000 |
| Total factory overhead cost | | $145,520 |
Tannin has available 16,000 hours of monthly productive capacityin the Trim Department under normal business conditions. DuringJuly, the Trim Department actually used 11,000 hours forproduction. The actual fixed costs were as budgeted. The actualvariable overhead for July was as follows:
| Actual variable factory overhead costs: | |
| Indirect factory labor | $35,390 |
| Power and light | 8,210 |
| Indirect materials | 16,200 |
| Total variable cost | $59,800 |
Construct a factory overhead cost variance report for the TrimDepartment for July. Enter all amounts as positive numbers. If anamount box does not require an entry, leave it blank. Round yourinterim computations to the nearest cent, if required.
| Tannin Products Inc. |
| Factory Overhead Cost Variance Report-TrimDepartment |
| For the Month Ended July 31 |
| Productive capacity for the month 16,000 hrs. | | | | |
| Actual productive capacity used for the month 11,000 hrs. | | | | |
| Budget (at actual production) | Actual | Favorable Variances | Unfavorable 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 | | | | $ |
| Volume variance-unfavorable | | | | |
| Idle hours at the standard rate for fixed factory overhead | | | | |
| Total factory overhead cost variance-unfavorable | | | | $ |
**THIS IS ALL THE AVAILABLE INFORMATION I HAVE. I DON'T HAVE ANYOTHER INFORMATION**
