✓ Controllable ariance, $(1,450) F
EXCEL TEMPLATE
PR 23-4B Factory overhead cost variance report
Obj. 4
Feeling Better Medical Inc., a manufacturer of disposable medical supplies, prepared the follow-
ing 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.
Variable costs:
Indirect factory wages
$247,500
Power and light
189,000
Indirect materials
52.500
Total variable cost
$ 489,000
Fixed costs:
Supervisory salaries
$126,000
Depreciation of plant and equipment
70,000
Insurance and property taxes
44,000
Total fixed cost
240,000
Total factory overhead cost
$729,000
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 insur-
ance and property taxes, $44,000.
Instructions
Prepare a factory overhead cost variance report for October. To be useful for cost comfol, the
budgeted amounts should be based on 28,500 hours.