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 7,700 hours. Variable costs: Indirect factory wages Power and light Indirect materials $22,330 15,015 11,935 $49,280 Total variable cost Fixed costs: Supervisory salaries $15,760 Depreciation of plant and equipment 40,430 Insurance and property taxes 12,340 Total fixed cost Total factory overhead cost 68,530 $117,810 During May, the department operated at 8,200 standard hours. The factory overhead costs incurred were indirect factory wages, $24,020; power and light, $15,700; indirect materials, $13,000; supervisory salaries, $15,760; depreciation of plant and equipment, $40,430; and insurance and property taxes, $12,340. Required: