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Instructions Amount Descriptions Factory Overhead Cost Variance Report Instructions Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May of the current year. The company expected to operate the department at 100% of normal capacity of 8,400 hours. 1 Variable costs: 2 Indirect factory wages $30,240.00 3 Power and light 20.160.00 4 Indirect materials 16,800.00 5 Total variable cost $67,200.00 Fixed costs: 7 Supervisory salaries $20,000.00 Depreciation of plant and equipment 36,200.00 9 Insurance and property taxes 15,200.00 10 Total fixed cost 71,400.00 11 Total factory overhead cost $138,600.00 During May, the department operated at 8,860 hours, and the factory overhead costs incurred were indirect factory wages, $32,400; power and light, $21,000; indirect materials, $18,250; supervisory salaries, $20,000; depreciation of plant and equipment, $36,200; and insurance and property taxes, $15,200. Required: Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,860 hours. 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. Factory Overhead Cost Variance Report Prepare a factory overhead cost variance report for May. To be wseful for cost control, the budgeted amounts should be based on 8,860 hours. 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. Score: 166/174 Tiger Equipment Inc. Factory Overhead Cost Variance Report Welding Department For the Month Ended May 31 1 Normal capacity for the month 8,400 hours 2 Actual production for the month 8,860 hours 3 4 Budget Actual Yarlances: Favorable Varlances: Unfavorable Variable costs: 6 Indirect factory wages $31,896.00 $32,400.00 $504.00 Power and light 21,264.00 21,000.00 $(264.00) Indirect materials 17,720.00 18,250.00 530.00 Total variable cost $70,880.00 $71,650.00 10 Fixed costs: $20,000.00 $20,000.00 11 Supervisory salaries 12 Depreciation of plant and equipment 13 Insurance and property taxes 36,200.00 36,200.00 15,200.00 15,200.00 14 Total fixed cost $71,400.00 $71,400.00 15 Total factory overhead cost $142,280.00 $143,050.00 16 Total controllable variances $(264.00) $1,034.00 17 18 Net controllable variance unfavorable $770.00 19 Volume variance favorable 20 Total factory overhead cost variance favorable