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Category > Accounting Posted 11 Aug 2017 My Price 7.00

Paragon Manufacturing Co

The Finishing Department of Paragon Manufacturing Co. prepared the following factory overhead cost budget for October of the current year, during which it expected to operate at a 100% capacity of 10,000 machine hours:

Variable cost:    
Indirect factory wages $18,000  
Power and light 12,000  
Indirect materials 4,000  
Total variable cost   $34,000
Fixed cost:    
Supervisory salaries $12,000  
Depreciation of plant and    
equipment 8,800  
Insurance and property taxes 3,200  
Total fixed cost   24,000
Total factory overhead   $58,000
     


During October, the plant was operated for 9,000 machine hours and the factory overhead costs incurred were as follows: indirect factory wages, $16,400; power and light, $10,000; indirect materials, $3,000; supervisory salaries, $12,000; depreciation of plant and equipment, $8,800; insurance and property taxes, $3,200.

Prepare a factory overhead cost variance report for October. (The budgeted amounts for actual amount produced should be based on 9,000 machine hours.)

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Maurice Tutor
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Status NEW Posted 11 Aug 2017 03:08 PM My Price 7.00

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