Question

In: Accounting

Factory Overhead Cost Variance Report metro lift medical Inc., a manufacturer of disposable medical supplies, prepared...

Factory Overhead Cost Variance Report

metro lift 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 6,200 hours.

Variable costs:
   Indirect factory wages $21,080
   Power and light 11,780
   Indirect materials 9,920
    Total variable cost $42,780
Fixed costs:
   Supervisory salaries $12,690
   Depreciation of plant and equipment 32,560
   Insurance and property taxes 9,930
    Total fixed cost 55,180
Total factory overhead cost $97,960

During October, the department operated at 6,600 standard hours, and the factory overhead costs incurred were indirect factory wages, $22,660; power and light, $12,310; indirect materials, $10,800; supervisory salaries, $12,690; depreciation of plant and equipment, $32,560; and insurance and property taxes, $9,930.

Required:

Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 6,600 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per unit computations to the nearest cent, if required. If an amount box does not require an entry, leave it blank.

metro lift medical Inc
Factory Overhead Cost Variance Report—Assembly Department
For the Month Ended October 31
Normal capacity for the month 6,200 hrs.
Actual production for the month 6,600 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-favorable:
Excess hours used over normal at the standard rate for fixed factory overhead
$

Solutions

Expert Solution

Variances are the differences between two comparisons.

In this given case Budgeted cost for actual production and Actual cost.

Working note Numbers are denoted for calculations provided under the answer.

(4) Working is for computing Standard Fixed Overhead Rate and Volume variance.

Please comment for any queries.. Thank you!!!


Related Solutions

Factory Overhead Cost Variance Report Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared...
Factory Overhead Cost Variance Report 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 6,200 hours. Variable costs:    Indirect factory wages $21,080    Power and light 11,780    Indirect materials 9,920     Total variable cost $42,780 Fixed costs:    Supervisory salaries $12,690    Depreciation of plant and equipment 32,560    Insurance and property taxes 9,930...
Factory Overhead Cost Variance Report Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared...
Factory Overhead Cost Variance Report 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 6,700 hours. Variable costs:    Indirect factory wages $21,440    Power and light 15,477    Indirect materials 13,467     Total variable cost $50,384 Fixed costs:    Supervisory salaries $11,250    Depreciation of plant and equipment 28,860    Insurance and property taxes 8,800...
Factory Overhead Cost Variance Report Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared...
Factory Overhead Cost Variance Report 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 8,700 hours. Variable costs:    Indirect factory wages $27,840    Power and light 20,706    Indirect materials 18,096     Total variable cost $66,642 Fixed costs:    Supervisory salaries $16,410    Depreciation of plant and equipment 42,090    Insurance and property taxes 12,840...
Factory Overhead Cost Variance Report Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared...
Factory Overhead Cost Variance Report 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 7,200 hours. Variable costs:    Indirect factory wages $23,040    Power and light 13,104    Indirect materials 10,944     Total variable cost $47,088 Fixed costs:    Supervisory salaries $14,900    Depreciation of plant and equipment 38,230    Insurance and property taxes 11,670...
Factory Overhead Cost Variance Report Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared...
Factory Overhead Cost Variance Report 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 6,700 hours. Variable costs:    Indirect factory wages $20,100    Power and light 14,271    Indirect materials 12,261     Total variable cost $46,632 Fixed costs:    Supervisory salaries $13,560    Depreciation of plant and equipment 34,790    Insurance and property taxes 10,610...
Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost...
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 6,200 hours. Variable costs:    Indirect factory wages $21,080    Power and light 11,780    Indirect materials 9,920     Total variable cost $42,780 Fixed costs:    Supervisory salaries $12,690    Depreciation of plant and equipment 32,560    Insurance and property taxes 9,930     Total fixed cost 55,180 Total...
west medic wing Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost...
west medic wing 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 6,200 hours. Variable costs:    Indirect factory wages $21,080    Power and light 11,780    Indirect materials 9,920     Total variable cost $42,780 Fixed costs:    Supervisory salaries $12,690    Depreciation of plant and equipment 32,560    Insurance and property taxes 9,930     Total fixed cost 55,180 Total...
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...
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 10,000 hours for production: 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 77,000 Total factory overhead...
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 18,000 hours for production: Variable overhead cost: Indirect factory labor $43,200 Power and light 13,500 Indirect materials 21,600 Total variable overhead cost $ 78,300 Fixed overhead cost: Supervisory salaries $76,490 Depreciation of plant and equipment 20,130 Insurance and property taxes 37,580 Total fixed overhead cost 134,200 Total factory overhead...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT