Topeka Plastics Inc. prepared the following factory overhead cost budget for the Trim Department for July 2012, during which it expected to use 25,000 hours for production:

Topeka Plastics has available 30,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 28,000 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 ..... $23,250
Power and light ....... 20,000
Indirect materials ...... 11,100
Total variable cost ...... $54,350

Construct a factory overhead cost variance report for the Trim Department for July.

  • CreatedFebruary 04, 2014
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