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 9,000 hours for production:
Variable overhead costs: Indirect factory labor $30,600 Power and light 6,930 Indirect materials 12,600 Total variable overhead costs $50,130
Fixed overhead costs: Supervisory salaries $42,980 Depreciation of plant and equipment 11,310 Insurance and property taxes 21,110 Total fixed overhead cost 75,400
Total factory overhead cost $125,540
Tannin has available 13,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 8,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows:
Actual variable factory overhead costs: Indirect factory labor $26,520
Power and light 6,050
Indirect materials 11,800
Total variable cost $44,370
Idle hours at the standard rate for fixed factory overhead _____
How do you find idle at the standard rate for fixed factory overhead and what is it?