PR $23-4$B Factory overhead cost variance report

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

$\backslash$table$[[$Variable costs:,$$247,500,],[,$ Indirect factory wages,$189,000,],[$Power and light,$52,500,],[$materials$,,$$$489,000$Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for October of the current year. 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.$

INSTRUCTIONS

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