factory over cost variance report

Factory Overhead Cost Variance Report 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 capaoty of 6,800 hours $21,080 Variable costs: Indirect factory wages Power and light Indirect materials Total vanable cost 13,872 11,832 $46,794 Fixed costs > Supervisory salaries $12,200 Depreciation of plant and equipment 31,290 Insurance and property taxes 9,550 Total fixed cost 53,040 Total factory overhead cost $99,924 During May, the department operated at 7,200 standard hours. The factory overhead costs incurred were indirect factory wages, $22,540, power and light, $14,420; indirect materials, $12,800; supervisory salaries, $12,200; depreciation of plant and equipment, $31,290; and insurance and property taxes, $9,550, Required: Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 7,200 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per unit computations to the nearest cent, if required. If an amount box does not require an entry, leave it blank. Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 7,200 hours. Enter a favorable vanance as a negative number using a minussion and an unfavorable variance as a positive number. Round your per unit computations to the nearest cent, if required. If an amount box does not require an entry, leave it blank. Tiger Equipnient Inc. Factory Overhead Cost Variance Report-Welding Department For the Month Ended May 31 Normal capacity for the month 6,800 hrs. Actual production for the month 7,200 hrs. Actual Unfavorable Favorable Budget Variances Variances Variable costs: Indirect factory wages Power and light Indirect materials 011 Total variable cost Fixed costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed cost Total factory overhead cost Total controllable variances 8 Excess hours used over normal at the standard rate for fixed factory overhead