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 10,000 hours for production: Variable overhead cost: Indirect factory labor $24,000 Power and light 7,700 Indirect materials 11,000 Total variable overhead cost $ 42,700 Fixed overhead cost: Supervisory salaries $46,280 Depreciation of plant and equipment 12,180 Insurance and property taxes 22,740 Total fixed overhead cost 81,200 Total factory overhead cost $123,900 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 fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead cost: Indirect factory labor $21,060 Power and light 6,810 Indirect materials 10,400 Total variable cost $38,270 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. Factory Overhead Cost Variance Report-Trim Department For the Month Ended July 31 Productive capacity for the month 14,000 hrs. Actual productive capacity used for the month 9,000 hrs. Actual Budget (at actual production) Unfavorable Variances Favorable Variances Variable factory overhead costs: Indirect factory labor $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 Power and light fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8 Indirect materials fill in the blank 9 fill in the blank 10 fill in the blank 11 fill in the blank 12 Total variable factory overhead cost $fill in the blank 13 $fill in the blank 14 Fixed factory overhead costs: Supervisory salaries $fill in the blank 15 $fill in the blank 16 Depreciation of plant and equipment fill in the blank 17 fill in the blank 18 Insurance and property taxes fill in the blank 19 fill in the blank 20 Total fixed factory overhead cost $fill in the blank 21 $fill in the blank 22 Total factory overhead cost $fill in the blank 23 $fill in the blank 24 Total controllable variances $fill in the blank 25 $fill in the blank 26 $fill in the blank 28 Idle hours at the standard rate for fixed factory overhead fill in the blank 30

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 10,000 hours for production: Variable overhead cost: Indirect factory labor $24,000 Power and light 7,700 Indirect materials 11,000 Total variable overhead cost $ 42,700 Fixed overhead cost: Supervisory salaries $46,280 Depreciation of plant and equipment 12,180 Insurance and property taxes 22,740 Total fixed overhead cost 81,200 Total factory overhead cost $123,900 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 fixed costs were as budgeted. The actual variable overhead for July was as follows: Actual variable factory overhead cost: Indirect factory labor $21,060 Power and light 6,810 Indirect materials 10,400 Total variable cost $38,270 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. Factory Overhead Cost Variance Report-Trim Department For the Month Ended July 31 Productive capacity for the month 14,000 hrs. Actual productive capacity used for the month 9,000 hrs. Actual Budget (at actual production) Unfavorable Variances Favorable Variances Variable factory overhead costs: Indirect factory labor $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 $fill in the blank 4 Power and light fill in the blank 5 fill in the blank 6 fill in the blank 7 fill in the blank 8 Indirect materials fill in the blank 9 fill in the blank 10 fill in the blank 11 fill in the blank 12 Total variable factory overhead cost $fill in the blank 13 $fill in the blank 14 Fixed factory overhead costs: Supervisory salaries $fill in the blank 15 $fill in the blank 16 Depreciation of plant and equipment fill in the blank 17 fill in the blank 18 Insurance and property taxes fill in the blank 19 fill in the blank 20 Total fixed factory overhead cost $fill in the blank 21 $fill in the blank 22 Total factory overhead cost $fill in the blank 23 $fill in the blank 24 Total controllable variances $fill in the blank 25 $fill in the blank 26 $fill in the blank 28 Idle hours at the standard rate for fixed factory overhead fill in the blank 30

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 18E: Factory overhead cost variance report Tannin Products Inc. prepared the following factory overhead...

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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 10,000 hours for production:

Variable overhead cost:
Indirect factory labor	$24,000
Power and light	7,700
Indirect materials	11,000
Total variable overhead cost		$ 42,700
Fixed overhead cost:
Supervisory salaries	$46,280
Depreciation of plant and equipment	12,180
Insurance and property taxes	22,740
Total fixed overhead cost		81,200
Total factory overhead cost		$123,900

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 fixed costs were as budgeted. The actual variable overhead for July was as follows:

Actual variable factory overhead cost:
Indirect factory labor	$21,060
Power and light	6,810
Indirect materials	10,400
Total variable cost	$38,270

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.
Factory Overhead Cost Variance Report-Trim Department
For the Month Ended July 31
Productive capacity for the month 14,000 hrs.
Actual productive capacity used for the month 9,000 hrs.
	Actual	Budget (at actual production)	Unfavorable Variances	Favorable Variances
Variable factory overhead costs:
Indirect factory labor	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3	$fill in the blank 4
Power and light	fill in the blank 5	fill in the blank 6	fill in the blank 7	fill in the blank 8
Indirect materials	fill in the blank 9	fill in the blank 10	fill in the blank 11	fill in the blank 12
Total variable factory overhead cost	$fill in the blank 13	$fill in the blank 14
Fixed factory overhead costs:
Supervisory salaries	$fill in the blank 15	$fill in the blank 16
Depreciation of plant and equipment	fill in the blank 17	fill in the blank 18
Insurance and property taxes	fill in the blank 19	fill in the blank 20
Total fixed factory overhead cost	$fill in the blank 21	$fill in the blank 22
Total factory overhead cost	$fill in the blank 23	$fill in the blank 24
Total controllable variances			$fill in the blank 25	$fill in the blank 26
				$fill in the blank 28

Idle hours at the standard rate for fixed factory overhead				fill in the blank 30

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