controllable variance

Project Description:

star medical, inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the assembly department for october 2012. the company expected to operate the department at 100% of normal capacity of 24,000 hours.
variable costs:
indirect factory wages $180,000
power and light 124,800
indirect materials 33,600
total variable cost $338,400

fixed costs:
supervisory salaries $72,000
depreciation of plant and equipment 51,500
insurance and property taxes 24,100
total fixed costs $147,600
total factory overhead cost $486,000

during october, the department operated at 22,500 hours, and the factory overhead costs incurred were indirect factory wages, $167,550; power and light, $116,800; indirect materials, $31,950; supervisory salaries, $72,000; depreciation of plant and equipment, $51,500; and insurance and property taxes, $24,100.

prepare a factory overhead cost variance report for october. to be useful for cost control, the budgeted amounts should be based on 22,500 hours.
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Price Type: Negotiable

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