The Finishing Department of Pinnacle Manufacturing Co

question 22

Essay

The Finishing Department of Pinnacle Manufacturing Co.prepared the following factory overhead cost budget for October of the current year, during which it expected to operate at a 100% capacity of 10,000 machine hours.
During October, the plant was operated for 9,000 machine hours and the factory overhead costs incurred were as follows: indirect factory wages, $16,400; power and light, $10,000; indirect materials, $3,000; supervisory salaries, $12,000; depreciation of plant and equipment, $8,800; insurance and property taxes, $3,200.
Prepare a factory overhead cost variance report for October.The budgeted amounts for actual amount produced should be based on 9,000 machine hours.

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Definitions:

Extrinsic Motivation

Motivation driven by external rewards, such as money or praise, rather than intrinsic satisfaction from the activity itself.

Growth Motivation

An internal drive to achieve personal improvement, learn new skills, and seek out new challenges.

Achievement Motivation

The drive or desire to accomplish goals, excel, and achieve competence and mastery in tasks.

Creativity

The ability to generate new ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others, and entertaining.