1. 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 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

   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. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry, leave it blank.

   Tiger Equipment Inc.
   Factory Overhead Cost Variance Report-Welding Department
   For the Month Ended May 31
   Normal capacity for the month 8,400 hrs.
   Actual production for the month 8,860 hrs.
   	Actual Cost	Budget (at Actual Production)	Unfavorable Variances	Favorable Variances
   Variable factory overhead costs:
   Indirect factory wages	$	$	$	$
   Power and light
   Indirect materials
   Total variable cost	$	$
   Fixed factory overhead costs:
   Supervisory salaries	$	$
   Depreciation of plant and equipment
   Insurance and property taxes
   Total fixed cost	$	$
   Total factory overhead cost	$	$
   Total controllable variances			$	$
   			$
   Volume variancefavorable:
   Excess hours used over normal at the standard rate for fixed factory overhead
   			$