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Factory overhead cost variance report Instructions Amount Descriptions Factory Overhead Cost Variance Report X Instructions Tiger...
Factory overhead cost variance report
Instructions
Amount Descriptions
Factory Overhead Cost Variance Report
X
Instructions
Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 8,500 hours.
|
TIGER EQUIPMENT INC. |
|
Factory Overhead Cost Budget—Welding Department |
|
For the Month Ended May 31 |
|
1 |
Variable costs: |
||
|
2 |
Indirect factory wages |
$29,750.00 |
|
|
3 |
Power and light |
23,800.00 |
|
|
4 |
Indirect materials |
17,000.00 |
|
|
5 |
Total variable cost |
$70,550.00 |
|
|
6 |
Fixed costs: |
||
|
7 |
Supervisory salaries |
$20,400.00 |
|
|
8 |
Depreciation of plant and equipment |
35,300.00 |
|
|
9 |
Insurance and property taxes |
20,800.00 |
|
|
10 |
Total fixed cost |
76,500.00 |
|
|
11 |
Total factory overhead cost |
$147,050.00 |
During May, the department operated at 8,820 standard hours, and the factory overhead costs incurred were indirect factory wages, $31,462; power and light, $24,428; indirect materials, $18,260; supervisory salaries, $20,400; depreciation of plant and equipment, $35,300; and insurance and property taxes, $20,800.
Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,820 hours. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter all variances as positive amounts.
Solutions
Expert Solution
| STANDARD | ACTUAL | VARIANCE ANALYSIS | |||||
| 8500 | 8820 | 8820 | |||||
| 1 | Variable costs: | ||||||
| 2 | Indirect factory wages | $29,750.00 | $30,870.00 | $31,462.00 | $592.00 | Unfavorable | |
| 3 | Power and light | 23,800.00 | $24,696.00 | $24,428.00 | $268.00 | Favorable | |
| 4 | Indirect materials | 17,000.00 | $17,640.00 | $18,260.00 | $620.00 | Unfavorable | |
| 5 | Total variable cost | $70,550.00 | $73,206.00 | $74,150.00 | $944.00 | Unfavorable | |
| 6 | Fixed costs: | ||||||
| 7 | Supervisory salaries | $20,400.00 | $20,400.00 | $20,400.00 | $0.00 | No Change | |
| 8 | Depreciation of plant and equipment | 35,300.00 | 35,300.00 | $35,300.00 | $0.00 | No Change' | |
| 9 | Insurance and property taxes | 20,800.00 | 20,800.00 | $20,800.00 | $0.00 | No Change' | |
| 10 | Total fixed cost | 76,500.00 | $76,500.00 | $76,500.00 | $0.00 | No Change' | |
| 11 | Total factory overhead cost | $147,050.00 | $149,706.00 | $150,650.00 | $944.00 | Unfavorable | |
THANK YOU
HOPING FOR A POSITIVE RESPONSE
ekkarill92 answered 1 month agoRelated Solutions
Factory Overhead Cost Variance Report Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following...
Factory Overhead Cost Variance Report
Tiger Equipment Inc., a manufacturer of construction equipment,
prepared the following factory overhead cost budget for the Welding
Department for May of the current year. The company expected to
operate the department at 100% of normal capacity of 8,400
hours.
Variable costs:
Indirect factory wages
$30,240
Power and light
20,160
Indirect materials
16,800
Total variable cost
$67,200
Fixed costs:
Supervisory salaries
$20,000
Depreciation of plant and equipment
36,200
Insurance and property taxes
15,200
Total fixed...
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Variable overhead costs:
Indirect factory labor
$24,000
Power and light
7,500
Indirect materials
17,000
Total variable overhead cost
$ 48,500
Fixed overhead costs:
Supervisory salaries
$43,890
Depreciation of plant and equipment
11,550
Insurance and property taxes
21,560
Total fixed overhead cost
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Tannin Products Inc. prepared the following factory overhead
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Variable overhead costs:
Indirect factory labor
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Power and light
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Indirect materials
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Total variable overhead cost
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Fixed overhead costs:
Supervisory salaries
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Depreciation of plant and equipment
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Insurance and property taxes
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Total fixed overhead cost
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Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for...
Factory Overhead Cost Variance Report
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 8,000 hours for production:
Variable overhead costs:
Indirect factory labor
$24,800
Power and light
6,000
Indirect materials
10,400
Total variable overhead cost
$ 41,200
Fixed overhead costs:
Supervisory salaries
$33,520
Depreciation of plant and equipment
8,820
Insurance and property taxes
16,460
Total fixed overhead cost
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Total factory overhead...
Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget for...
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Tannin Products Inc. prepared the following factory overhead
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during which it expected to use 12,000 hours for production:
Variable overhead costs:
Indirect factory labor
$39,600
Power and light
9,120
Indirect materials
16,800
Total variable overhead cost
$ 65,520
Fixed overhead costs:
Supervisory salaries
$45,600
Depreciation of plant and equipment
12,000
Insurance and property taxes
22,400
Total fixed overhead cost
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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 16,000 hours for production:
Variable overhead costs:
Indirect factory
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$48,000
Power and light
11,520
Indirect materials
24,000
Total
variable overhead cost
$ 83,520
Fixed overhead costs:
Supervisory
salaries
$59,280
Depreciation of plant
and equipment
15,600
Insurance and property
taxes
29,120
Total
fixed overhead cost
104,000
Total factory...
#7 Factory Overhead Cost Variance Report Tannin Products Inc. prepared the following factory overhead cost budget...
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Factory Overhead Cost Variance Report
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 16,000 hours for production:
Variable overhead costs:
Indirect factory
labor
$48,000
Power and light
11,520
Indirect materials
24,000
Total
variable overhead cost
$ 83,520
Fixed overhead costs:
Supervisory
salaries
$59,280
Depreciation of plant
and equipment
15,600
Insurance and property
taxes
29,120
Total
fixed overhead cost
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Variable costs:
Indirect factory wages
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Power and light
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Indirect materials
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