med tech company a manufacturer of disposable medical supplies prepared the followin 666050

Med Tech Company, a manufacturer of disposable medical supplies, prepared the following factory overhead cost budget for the Assembly Department for August 2008. The company expected to operate the department at 100% of normal capacity of 28,000 hours.

Variable costs:
Indirect factory wages	$246,400
Power and light	179,200
Indirect materials	44,800
Total variable cost		$470,400
Fixed costs:
Supervisory salaries	$130,000
Depreciation of plant and equipment	105,000
Insurance and property taxes	22,600
Total fixed cost		257,600
Total factory overhead cost		$728,000

During August, the department operated at 25,250 hours, and the factory overhead costs incurred were indirect factory wages, $216,500; power and light, $162,600; indirect materials, $38,200; supervisory salaries, $130,000; depreciation of plant and equipment, $105,000; and insurance and property taxes, $22,600.

Instructions

Prepare a factory overhead cost variance report for August. To be useful for cost control, the budgeted amounts should be based on 25,250 hours.