factory overhead cost variance. PR 23-4A Factory overhead cost variance report Obj. 4 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. Variable costs: Indirect factory wages $30,240 Power and light 20,160 Indirect materials 16,800 Total variable cost $ 67,200 Fixed costs: Supervisory salaries $20,000 Depreciation of plant and equipment 36,200 Insurance and property taxes 15,200 Total fixed cost 71,400 Total factory overhead cost $138,600 (Continued) rade Report Chapter 23 Evaluating Variances from Standard Costs During May, the department operated at 8,860 hours, and the factory overhead costs incurred pervisory salaries, $20,000; depreciation of plant and equipment, $36,200, and insurance and property taxes, $15,200. Instructions Prepare a factory overhead cost variance report for May. To be useful for cost control, the bu geted amounts should be based on 8,860 hours