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 13,000 hours for production:
Variable overhead costs: | ||
Indirect factory labor | $40,300 | |
Power and light | 9,750 | |
Indirect materials | 19,500 | |
Total variable overhead cost | $ 69,550 | |
Fixed overhead costs: | ||
Supervisory salaries | $56,200 | |
Depreciation of plant and equipment | 14,790 | |
Insurance and property taxes | 27,610 | |
Total fixed overhead cost | 98,600 | |
Total factory overhead cost | $168,150 |
Tannin has available 17,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 12,000 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 | $36,270 |
Power and light | 8,840 |
Indirect materials | 18,900 |
Total variable cost | $64,010 |
Construct a factory overhead cost variance report for the Trim Department for July. Enter all amounts as positive numbers. 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 17,000 hrs. | ||||
Actual productive capacity used for the month 12,000 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 | $ |
Solution:
Tannin Products Inc. | ||||
Factory Overhead Cost Variance Report-Trim Department | ||||
For the Month Ended July 31 | ||||
Productive capacity for the month 17,000 hrs. | ||||
Actual productive capacity used for the month 12,000 hrs. | ||||
Particulars | Budget (At actual prodcution) | Actual | Favorable variances | Unfavorable Variances |
Variable factory overhead costs: | ||||
Indirect factory labor | $37,200.00 | $36,270.00 | $930.00 | |
Power and light | $9,000.00 | $8,840.00 | $160.00 | |
Indirect materials | $18,000.00 | $18,900.00 | $900.00 | |
Total variable factory overhead cost | $64,200.00 | $64,010.00 | ||
Fixed factory overhead costs: | ||||
Supervisory salaries | $56,200.00 | $56,200.00 | ||
Depreciation of plant and equipment | $14,790.00 | $14,790.00 | ||
Insurance and property taxes | $27,610.00 | $27,610.00 | ||
Total fixed factory overhead cost | $98,600.00 | $98,600.00 | ||
Total factory overhead cost | $1,62,800.00 | $1,62,610.00 | ||
Total controllable variances | $1,090.00 | $900.00 | ||
Net controllable variance-favorable | $190.00 | |||
Volume variance-unfavorable: | ||||
Idle hours at the standard rate for fixed factory overhead ($98600/17000*5000) | $29,000.00 | |||
Total factory overhead cost variance-unfavorable | $28,810.00 |
Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for...
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
$47,600
Power and light
10,360
Indirect materials
15,400
Total variable overhead cost
$73,360
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...
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 13,000 hours for production: $40,300 9,360 19,500 $ 69,160 Variable overhead cost: Indirect factory labor Power and light Indirect materials Total variable overhead cost Fixed overhead cost: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed overhead cost $58,140 15,300 28,560 102,000 $171,160 Total factory...
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 12,000 hours for production: Variable overhead costs: Indirect factory labor $28,800 Power and light 8,880 Indirect materials 13,200 Total variable overhead cost $ 50,880 Fixed overhead costs: Supervisory salaries $46,510 Depreciation of plant and equipment 12,240 Insurance and property taxes 22,850 Total fixed overhead cost 81,600 Total factory overhead...
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 20,000 hours for production:
Variable overhead costs:
Indirect factory labor
$46,000
Power and light
12,000
Indirect materials
20,000
Total variable overhead cost
$78,000
Fixed overhead costs:
Supervisory salaries
$54,500
Depreciation of plant and equipment
40,000
Insurance and property taxes
35,500
Total fixed overhead cost
130,000
Total factory overhead cost...
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 8,000 hours for production: $25,600 Variable overhead cost: Indirect factory labor Power and light Indirect materials 6,000 8,800 Total variable overhead cost $ 40,400 Fixed overhead cost: Supervisory salaries Depreciation of plant and equipment $36,940 9,720 18,140 Insurance and property taxes Total fixed overhead cost 64,800 Total factory overhead cost $105,200 Tannin has available...
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 24,000 hours for production: 1 Variable overhead cost: 2 Indirect factory labor $57,600.00 3 Power and light 14,400.00 4 Indirect materials 24,000.00 5 Total variable overhead cost $96,000.00 6 Fixed overhead cost: 7 Supervisory salaries $55,000.00 8 Depreciation of plant and equipment 39,200.00 9 Insurance and property taxes 152,300.00 10 Total fixed overhead cost...
ucts Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 10,000 hours for production: 7.300 16,000 Variable overhead cost: Indirect factory labor $28.000 Power and light Indirect materials Total variable overhead cost $ 51,300 Fored overhead cost: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Totale overhead cost 82.600 Total factory overhead cost $13.900 Tannin has available 14,000 hours of monthly productive...
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 22,000 hours for production: 1 Variable overhead cost: 2 Indirect factory labor $55,000.00 3 Power and light 11,000.00 4 Indirect materials 22,000.00 5 Total variable overhead cost $88,000.00 6 Fixed overhead cost: 7 Supervisory salaries $52,600.00 8 Depreciation of plant and equipment 39,400.00 9 Insurance and property taxes 137,500.00 10 Total fixed overhead cost...
Factory Overhead Cost Variance Report
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 8,400
hours.
Variable costs:
Indirect factory wages
$30,240
Power and light
20,160
Indirect materials
16,800
Total variable cost
$67,200
Fixed costs:
Supervisory salaries
$20,000
Depreciation of plant and equipment
36,200
Insurance and property taxes
15,200
Total fixed...
EX 23-19 Factory overhead cost variance report Medical Molded Products Inc. prepared the following factory overhead cost budget for the Trim Department for March 2012, during which it expected to use 10,000 hours for production: $29,000 7,500 13,000 $ 49,500 Variable overhead cost: Indirect factory labor Power and light Indirect materials Total variable cost Fixed overhead cost: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed cost Total factory overhead cost $34,100 24,800 22,100 81,000 $...