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 17,000 hours for production: Variable...



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 17,000 hours for production:




























































Variable overhead cost:
    Indirect factory labor$57,800
    Power and light12,240
    Indirect materials27,200
      Total variable overhead cost$ 97,240
Fixed overhead cost:
    Supervisory salaries$59,850
    Depreciation of plant and equipment15,750
    Insurance and property taxes29,400
      Total fixed overhead cost105,000
Total factory overhead cost$202,240

Tannin has available 21,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 16,000 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$53,040
Power and light11,310
Indirect materials26,900
Total variable cost$91,250



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.<br>Factory Overhead Cost Variance Report-Trim Department<br>For the Month Ended July 31<br>Productive capacity for the month 21,000 hrs.<br>Actual productive capacity used for the month 16,000 hrs.<br>Actual<br>Budget (at actual production)<br>Unfavorable Variances<br>Favorable Variances<br>Variable factory overhead costs:<br>Indirect factory labor<br>Power and light<br>Indirect materials<br>Total variable factory overhead cost<br>Fixed factory overhead costs:<br>Supervisory salaries<br>$<br>$<br>Depreciation of plant and equipment<br>Insurance and property taxes<br>Total fixed factory overhead cost<br>$<br>Total factory overhead cost<br>Total controllable variances<br>$<br>Idle hours at the standard rate for fixed factory overhead<br>

Extracted text: Tannin Products Inc. Factory Overhead Cost Variance Report-Trim Department For the Month Ended July 31 Productive capacity for the month 21,000 hrs. Actual productive capacity used for the month 16,000 hrs. Actual Budget (at actual production) Unfavorable Variances Favorable 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 $ Idle hours at the standard rate for fixed factory overhead
Jun 01, 2022
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