Assembly Departmen

Variance Report
For the month ending Au

Budget Budget
Allowance Allowance
Expected Actual
Capacity Activity

Based on Direct labor hours 1350 1290

Percentage of Capacity 90% 86%

Variable Cost
Indirect labor 3037,5 2902,5
Factory supplies 1620 1548
Power 472,5 451,5
Rework Operations 675 645
Payroll taxes 472,5 451,5
Repair and Maintenance 202,5 193,5
General Factory 270 358
Total Variable Cost 6750 6450

Fixed Cost
Indirect labor 2500 2500
Supervision 1800 1800
Factory Supplies 500 500
Power 150 150
Rework Operations 600 600
Payroll taxes 1000 1000
Repair and Maintenance 350 350
Property Insurance 150 150
Property taxes 200 200
Vacation pay 1800 1800
Employee pension costs 1200 1200
Employee health plan 500 500
Machinery depreciation 450 450
Water and Heat 400 400
Building occupancy 900 900
General Factory 1000 1000
Total Fixed Cost 13500 13500
Total Cost 20250 19950
Applied factory Overhead
($15 x 1290) 19350
 $600

Actual Factory Overhead cost $21,860

Applied factory Overhead $19,350
Under applied factory overhead $2,510

Spending variance $1,910 unfavorable

Idle capacity Variance $600 unfavorable
Under applied factory overhead $2,510
 Assembly Department
Variance Report
For the month ending August

Spending
Actual Variance
Cost (Favorable)
Unfavorable

3250 347,5
1654 106
465 13,5
488,25 (156,75)
451,5 0
1175,75 982,25
385 127
7869,5

2500 0
1800 0
500 0
150 0
600 0
1000 0
350 0
165 15
210,5 10,5
2200 400
1200 0
500 0
450 0
465 65
900 0
1000 0
13990,5
21860 1910 unfavorable
 unfavorable

unfavorable
unfavorable