Question

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 $ 130,500 23 Performance Evaluation Using Variances from Standard Costs Medical Molded Products has available 15,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During March, the Trim Depart- ment actually used 11,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for March was as follows: Actual variable factory overhead cost: Indirect factory labor Power and light Indirect materials Total variable cost $31,100 8,100 15,000 $54,200 Construct a factory overhead cost variance report for the Trim Department for March.

Answer 1

Please find below table useful to compute Desired Results: -

B 1 Total Factory Overhead Cost 130500 2 Budget Hours 10000 3 Actual Hours 11000 4 Actual Total Variable Cost 54200 5 Total Variable Overhead Cost 49500 6 Total Fixed Overhead Cost 81000 7 Standard Cost =B1/B2*B3 8 Actual Cost =B4+B6 9 Factory Overhead Cost Variance =B7-BS 10 Factory Overhead Controllable Variance =B5/B2* B3-B4 F | 11 Factory Overhead Volume Variance =B6/B2* B3-B6 F

End Report will be as follows: -

1 Total Factory Overhead Cost 2 Budget Hours 3 Actual Hours 4 Actual Total Variable Cost 5 Total Variable Overhead Cost 6 Total Fixed Overhead Cost 7 Standard Cost 8 Actual Cost 9 Factory Overhead Cost Variance 10 Factory Overhead Controllable Variance 11 Factory Overhead Volume Variance BC $130,500 10,000 11,000 $54,200 $49,500 $81,000 $143,550 $135,200 $8,350 F $250 F $8,100 F