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Factory Overhead Cost Variance Report 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 6,800 hours. Variable costs: Indirect factory wages $20,400 13,600 Power and light Indirect materials 11,560 Total variable cost $45,560 Fixed costs: Supervisory salaries Depreciation of plant and equipment $12,510 32,100 9,790 Insurance and property taxes Total fixed cost 54,400 $99,960 Total factory overhead cost During October, the department operated at 7,200 standard hours. The factory overhead costs incurred were indirect factory wages, $21,820, power and light, $14,140; indirect materials, $12,500; supervisory salaries, $12,510; depreciation of plant and equipment, $32,100; and insurance and property taxes, $9,790 Required: Prepare a factory overhead cost variance report for October. To be useful for cost control, the budgeted amounts should be based on 7,200 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per unit computations to the nearest cent, if required. If an amount box does not require an entry, leave it blank. Feeling Better Medical Inc. Factory Overhead Cost Variance Report-Assembly Department For the Month Ending October 31 Productive capacity for the month 6,800 hrs. Actual production for the month 7,200 hrs. Unfavorable Favorable Actual Budget Variances Variances Feeling Better Medical Inc. Factory Overhead Cost Variance Report-Assembly Department For the Month Ending October 31 Productive capacity for the month 6,800 hrs. Actual production for the month 7,200 hrs. Unfavorable Actual Budget Variances Variable factory overhead costs: Favorable Variances Indirect factory wages Power and light Indirect materials Total variable factory overhead cost Fixed factory overhead costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed factory overhead cost Total factory overhead cost Total controllable variances QO O Excess hours used over normal at the standard rate for fixed factory overhead

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