Tiger Equipment Inc., a manufacturer of construction equipment, prepared the fol
ID: 2545598 • Letter: T
Question
Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 8,700 hours.
1
Variable costs:
2
Indirect factory wages
$40,020.00
3
Power and light
20,880.00
4
Indirect materials
17,400.00
5
Total variable cost
$78,300.00
6
Fixed costs:
7
Supervisory salaries
$19,800.00
8
Depreciation of plant and equipment
35,700.00
9
Insurance and property taxes
18,450.00
10
Total fixed cost
73,950.00
11
Total factory overhead cost
$152,250.00
During May, the department operated at 9,080 hours, and the factory overhead costs incurred were indirect factory wages, $42,268; power and light, $22,064; indirect materials, $18,700; supervisory salaries, $19,800; depreciation of plant and equipment, $35,700; and insurance and property taxes, $18,450.
Required:
X
Factory Overhead Cost Variance Report
Shaded cells have feedback.
Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 9,080 hours. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Score: 139/174
Tiger Equipment Inc.
Factory Overhead Cost Variance Report—Welding Department
For the Month Ended May 31
1
Normal capacity for the month
8,700 hours
2
Actual production for the month
9,080 hours
3
4
Budget
Actual
Variances: Favorable
Variances: Unfavorable
5
Variable costs:
6
7
8
9
10
Fixed costs:
11
12
13
14
15
16
17
18
19
20
Points:
31.16 / 39
Feedback
Check My Work
A factory overhead cost variance report is useful to management in controlling factory overhead costs. Budgeted and actual costs for variable and fixed factory overhead along with the related controllable and volume variances are reported by each cost element.
1
Variable costs:
2
Indirect factory wages
$40,020.00
3
Power and light
20,880.00
4
Indirect materials
17,400.00
5
Total variable cost
$78,300.00
6
Fixed costs:
7
Supervisory salaries
$19,800.00
8
Depreciation of plant and equipment
35,700.00
9
Insurance and property taxes
18,450.00
10
Total fixed cost
73,950.00
11
Total factory overhead cost
$152,250.00
Explanation / Answer
Tiger Equipment Inc. Factory Overhead Cost Variance Report- Welding Department For the Month Ended May31 1 Normal Capacity for the Month 8700 Hours 2 Actual Production for the Month 9080 Hours 3 Budget Actual Variance Favourable Variance Unfavourable 4 Variable Cost 5 Indirect Factory Wages $40,020.00 $42,268.00 $2,248.00 6 Power & Light $20,880.00 $22,064.00 $1,184.00 7 Indirect Material $17,400.00 $18,700.00 $1,300.00 8 Fixed Cost 9 Supervisor Salaries $19,800.00 $19,800.00 10 Depreciation of Plant & Equipment $35,700.00 $35,700.00 11 Insurance and property Tax $18,450.00 $18,450.00 12 Total Factory Overhead Cost $152,250.00 $156,982.00 $4,732.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.