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 6,900 hours. Variable costs: Indirect factory wages $20,010 Power and light 13,938 Indirect materials 11,178 Total variable cost $45,126 Fixed costs: Supervisory salaries $11,430 Depreciation of plant and equipment 29,310 Insurance and property taxes 8,940 Total fixed cost 49,680 Total factory overhead cost $94,806 During May, the department operated at 7,300 standard hours. The factory overhead costs incurred were indirect factory wages, $21,380; power and light, $14,480; indirect materials, $12,100; supervisory salaries, $11,430; depreciation of plant and equipment, $29,310; and insurance and property taxes, $8,940. Required: Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 7,300 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 6,900 hrs. Actual production for the month 7,300 hrs. Actual Budget Unfavorable Variances Favorable Variances Variable costs: Indirect factory wages Power and light 100 I Indirect materials Total variable cost DOOD Fixed costs: Supervisory salaries Depreciation of plant and equipment Fixed costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed cost Total factory overhead cost Total controllable variances do Net controllable variance-unfavorable Volume variance-favorable: Excess hours used over normal at the standard rate for fixed factory overhead Total factory overhead cost variance-favorable