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 18,000 hours for production: Variable overhead cost: Indirect factory labor $43,200 Power and light 12,960 Indirect materials 28,800 Total variable overhead cost $ 84,960 Fixed overhead cost: Supervisory salaries $62,700 Depreciation of plant and equipment 16,500 Insurance and property taxes 30,800 Total fixed overhead cost 110,000 Total factory overhead cost $194,960 Tannin has available 22,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 17,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead cost: Indirect factory labor $39,780 Power and light 12,020 Indirect materials 28,600 Total variable cost $80,400 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 22,000 hrs. Actual productive capacity used for the month 17,000 hrs. Actual Budget (at actual production) Unfavorable Variances Favorable Variances Variable factory overhead costs: Indirect factory labor $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 Power and light fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8 Indirect materials fill in the blank 9 fill in the blank 10 fill in the blank 11 fill in the blank 12 Total variable factory overhead cost $fill in the blank 13 $fill in the blank 14 Fixed factory overhead costs: Supervisory salaries $fill in the blank 15 $fill in the blank 16 Depreciation of plant and equipment fill in the blank 17 fill in the blank 18 Insurance and property taxes fill in the blank 19 fill in the blank 20 Total fixed factory overhead cost $fill in the blank 21 $fill in the blank 22 Total factory overhead cost $fill in the blank 23 $fill in the blank 24 Total controllable variances $fill in the blank 25 $fill in the blank 26 $fill in the blank 28 Idle hours at the standard rate for fixed factory overhead fill in the blank 30 $fill in the blank 32

Question

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 18,000 hours for production:

Variable overhead cost:
Indirect factory labor	$43,200
Power and light	12,960
Indirect materials	28,800
Total variable overhead cost		$ 84,960
Fixed overhead cost:
Supervisory salaries	$62,700
Depreciation of plant and equipment	16,500
Insurance and property taxes	30,800
Total fixed overhead cost		110,000
Total factory overhead cost		$194,960

Tannin has available 22,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 17,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows:

Actual variable factory overhead cost:
Indirect factory labor	$39,780
Power and light	12,020
Indirect materials	28,600
Total variable cost	$80,400

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 22,000 hrs.
Actual productive capacity used for the month 17,000 hrs.
	Actual	Budget (at actual production)	Unfavorable Variances	Favorable Variances
Variable factory overhead costs:
Indirect factory labor	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3	$fill in the blank 4
Power and light	fill in the blank 5	fill in the blank 6	fill in the blank 7	fill in the blank 8
Indirect materials	fill in the blank 9	fill in the blank 10	fill in the blank 11	fill in the blank 12
Total variable factory overhead cost	$fill in the blank 13	$fill in the blank 14
Fixed factory overhead costs:
Supervisory salaries	$fill in the blank 15	$fill in the blank 16
Depreciation of plant and equipment	fill in the blank 17	fill in the blank 18
Insurance and property taxes	fill in the blank 19	fill in the blank 20
Total fixed factory overhead cost	$fill in the blank 21	$fill in the blank 22
Total factory overhead cost	$fill in the blank 23	$fill in the blank 24
Total controllable variances			$fill in the blank 25	$fill in the blank 26
				$fill in the blank 28

Idle hours at the standard rate for fixed factory overhead				fill in the blank 30
				$fill in the blank 32