Question

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 capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 9,000 hours for production. The actual fed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead cost: Indirect factory labor Power and light 6,450 Indirect materials 15.100 45.120 547,080 12,390 23,130 $24,570 Construct a factory overhead cost variance report for the Department for July. Enter a favorable variance as a negative number using a minus sign and an e variance as a positive number of mount box does not require an entry, leave it blank. Round your interim computations to the nearest cant required. Tan Products Inc. Factory Overhead Cost Variance Report-Tm Department

Answer 1

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Budgeted (At 10000 hours of Production) Calcualtion for 9000 hours Unfavourable Variance Favourable Variance Particulars Actual Budget (at actual production of 9000 hours) (A) (B) (B-A) (B-A) 10000 9000 Variable Cost Overhead Cost Indirect Factory Cost Power and Light Indirect Material 24570 6450 15100 28000 7300 16000 25200 28000/10000*9000 65707300/10000*9000 14400 16000/10000*9000 630 120 -700 Total Varible Cost 46120 51300 46170 Fixed Cost Overhead Cost Supervisory Salaries Depreciation Insurance 47080 12390 23130 47080 12390 23130 47080 12390 23130 Total Fixed Cost 82600 82600 82600 Total Factory Overhead 128720 133900 128770