Question: Tannin Products Inc prepared the following factory overhead cost budget

Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July 2014, during which it expected to use 20,000 hours for production:

Tannin has available 25,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 22,000 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 ........ $ 49,700
Power and light ........... 13,000
Indirect materials .......... 24,000
Total variable cost ......... $ 86,700
Construct a factory overhead cost variance report for the Trim Department forJuly.
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  • CreatedJune 27, 2014
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