Seabury, Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October. The company expected to operate the department at 100% of normal capacity of 25,000 hours.

Variable costs:

Indirect factory wages ...................................$150,000

Power and light .............................................29,500

Indirect materials ............................................17,000

Total variable cost ...................................................$196,500

Fixed costs:

Supervisory salaries ..................................... $125,000

Depreciation of plant and equipment .....................49,000

Insurance and property taxes ..............................29,750

Total field cost ....................................................... 203,750

Total factory overhead cost ........................................$400,250

During October, the department operated at 23,500 hours, and the factory overhead costs incurred were as follows: indirect factory wages, $140,500; power and light, $28,600; indirect materials, $15,220; supervisory salaries, $125,000; depreciation of plant and equipment, $49,000; and insurance and property taxes, $29,750.

Instructions

Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 23,500 hours?