Question

Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 25,000 hours for production:

1	Variable overhead cost:
2	Indirect factory labor	$62,500.00
3	Power and light	12,500.00
4	Indirect materials	25,000.00
5	Total variable overhead cost		$100,000.00
6	Fixed overhead cost:
7	Supervisory salaries	$52,200.00
8	Depreciation of plant and equipment	39,200.00
9	Insurance and property taxes	163,600.00
10	Total fixed overhead cost		255,000.00
11	Total factory overhead cost		$355,000.00

Tannin has available 30,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 27,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows:

1	Actual variable factory overhead cost:
2	Indirect factory labor	$66,660.00
3	Power and light	13,300.00
4	Indirect materials	29,100.00
5	Total variable cost	$109,060.00

Required:

Construct a factory overhead cost variance report for the Trim Department for July. 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. Construct a factory overhead cost variance report for the Trim Department for July. 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.

Standard Direct Materials Cost per Unit

Roanoke Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (1,586 bars) are as follows:

Ingredient	Quantity		Price
Cocoa	390	lbs.	$0.30		per lb.
Sugar	120	lbs.	$0.60		per lb.
Milk	90	gal.	$1.60		per gal.

Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent.
$per bar

Answer 1

Answer 1 Factory overhead cost variance report: Tannin products incorporation Standard cost (27000 hours) Actual cost (27000 hours) Variance Variable overhead cost: Indirect factory labor Power and Light Indirect materials Total variable overhead cost Fixed overhead cost Su Depreciation of plant and S 67,500 S 13,500 $ 27,000 S 66,660 S 13,300 S 29,100 840 F 200 F 2100 U $109,060 1060 U S 108,000 $ 52,200 $ 39,200 S 163,600 S 52,200 S 39,200 S 163,600 salaries ment Insurance and property taxes Total fixed overhead cost Total factory overhead cost S 255,000 S 255,000 S 363,000 $ 364,060 1060 U