Question: Feeling Better Medical Inc a manufacturer of disposable medical supplies

Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October 2014. The company expected to operate the department at 100% of normal capacity of 30,000 hours.

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.

Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 28,500hours.
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  • CreatedJune 27, 2014
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