Reference no: EM132687153
Problem - Factory overhead cost variance report - Medical Molded Products Inc. prepared the following factory overhead cost budget for the Trim Department for March 2012, during which it expected to use 10,000 hours for production:
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Variable overhead cost:
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Indirect factory labor
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$29,000
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Power and light
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7,500
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Indirect materials
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13,000
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Total variable cost
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$49,500
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Fixed overhead cost:
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Supervisory salaries
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$34,100
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Depreciation of plant and equipment
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24,800
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Insurance and property taxes
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22,100
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Total fixed cost
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81,000
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Total factory overhead cost
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$130,500
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Medical Molded Products has available 15,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During March, the Trim Department actually used 11,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for March was as follows:
Actual variable factory overhead cost:
Indirect factory labor $31,100
Power and light 8,100
Indirect materials 15,000
Total variable cost $54,200
Required - Construct a factory overhead cost variance report for the Trim Department for March.