Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October of the current year. The company expected to operate the department at 100% of normal capacity of 30,000 hours. Variable costs:     Indirect factory wages $247,500   Power and light 189,000   Indirect materials 52,500       Total variable cost   $489,000 Fixed costs:     Supervisory salaries $126,000   Depreciation of plant and equipment 70,000   Insurance and property taxes 44,000       Total fixed cost   240,000 Total factory overhead cost   $729,000 During October, the department operated at 28,500 hours, and the factory overhead costs incurred were indirect factory wages, $234,000; power and light, $178,500; indirect materials, $50,600; supervisory salaries, $126,000; depreciation of plant and equipment, $70,000; and insurance and property taxes, $44,000. Required: Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 28,500 hours. 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. Feeling Better Medical Inc. Factory Overhead Cost Variance Report-Assembly Department For the Month Ended October 31 Normal capacity for the month 30,000 hrs.         Actual production for the month 28,500 hrs.           ActualCost Budget(at ActualProduction) UnfavorableVariances FavorableVariances Variable factory overhead costs:         Indirect factory wages $ $ $ $ Power and light         Indirect materials         Total variable cost $ $     Fixed factory overhead costs:         Supervisory salaries $ $     Depreciation of plant and equipment         Insurance and property taxes         Total fixed cost $ $     Total factory overhead cost $ $     Total controllable variances     $ $       $   Volume variance—unfavorable:         Idle hours at the standard rate for fixed factory overhead               $

Question

Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October of the current year. The company expected to operate the department at 100% of normal capacity of 30,000 hours.

Variable costs:    
Indirect factory wages $247,500  
Power and light 189,000  
Indirect materials 52,500  
    Total variable cost   $489,000
Fixed costs:    
Supervisory salaries $126,000  
Depreciation of plant and equipment 70,000  
Insurance and property taxes 44,000  
    Total fixed cost   240,000
Total factory overhead cost   $729,000

During October, the department operated at 28,500 hours, and the factory overhead costs incurred were indirect factory wages, $234,000; power and light, $178,500; indirect materials, $50,600; supervisory salaries, $126,000; depreciation of plant and equipment, $70,000; and insurance and property taxes, $44,000.

Required:

Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 28,500 hours. 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.

Feeling Better Medical Inc.
Factory Overhead Cost Variance Report-Assembly Department
For the Month Ended October 31
Normal capacity for the month 30,000 hrs.        
Actual production for the month 28,500 hrs.        
 
Actual
Cost
Budget
(at Actual
Production)

Unfavorable
Variances

Favorable
Variances
Variable factory overhead costs:        
Indirect factory wages $ $ $ $
Power and light        
Indirect materials        
Total variable cost $ $    
Fixed factory overhead costs:        
Supervisory salaries $ $    
Depreciation of plant and equipment        
Insurance and property taxes        
Total fixed cost $ $    
Total factory overhead cost $ $    
Total controllable variances     $ $
      $  
Volume variance—unfavorable:        
Idle hours at the standard rate for fixed factory overhead        
      $  

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