Maurice Tutor

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Category > Accounting Posted 11 Jul 2017 My Price 13.00

factory overhead cost variance report

factory overhead cost variance report

 

Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Depart- ment for July of the current year, during which it expected to use 20,000 hours for production:

Variable overhead cost:

 

Indirect factory labor

$46,000

 

Power and light

12,000

Indirect materials

  20,000

Total variable overhead cost Fixed overhead cost:

 

$  78,000

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

 

$208,000

Tannin has available 25,000 hours of monthly productive capacity in the Trim Depart- ment under normal business conditions. During July, the Trim Department actually used 22,000 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

$49,700

Power and light

13,000

Indirect materials

  24,000

Total variable cost

$86,700

Construct a factory overhead cost variance report for the Trim Department for July.

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Maurice Tutor
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Status NEW Posted 11 Jul 2017 11:07 PM My Price 13.00

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