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 8,200 hours. Variable costs: Indirect factory wages Power and light $26,240 18,532 Indirect materials 15,252 Total variable cost $60,024 Fixed costs: Supervisory salaries $13,960 Depreciation of plant and 35,800 equipment Insurance and property taxes 10,920 Total fixed cost Total factory overhead cost 60,680 $120,704 During May, the department operated at 8,700 standard hours. The factory overhead costs incurred were indirect factory wages, $28,120; power and light, $19,310; indirect materials, $16,500; supervisory salaries, $13,960; depreciation of plant and equipment, $35,800; and insurance and property taxes, $10,920. Required: Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,700 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. Tiger Equipment Inc. Factory Overhead Cost Variance Report-Welding Department For the Month Ended May 31 Normal capacity for the month 8,200 hrs. Actual production for the month 8,700 hrs. Variable costs: Indirect factory wages Power and light Indirect materials 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 Actual Budget Unfavorable Variances Favorable Variances Excess hours used over normal at the standard rate for fixed factory overhead 00 0