iger 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 8,500 hours. TIGER EQUIPMENT INC. Factory Overhead Cost Budget - Welding Department For the Month Ended May 31 1 Variable costs: 2 Indirect factory wages $29,750.00 3 Power and light 23,800.00 4 Indirect materials 17,000.00 5 Total variable cost $70,550.00 6 Fixed costs: 7 Supervisory salaries $20,400.00 8 Depreciation of plant and equipment 35,300.00 9 Insurance and property taxes 20,800.00 10 Total fixed cost 76,500.00 11 Total factory overhead cost $147,050.00 During May, the department operated at 8,820 standard hours. The factory overhead costs incurred were indirect factory wages, $31,462; power and light, $24,428; indirect materials, $18,260; supervisory salaries, $20,400; depreciation of plant and equipment, $35,300; and insurance and property taxes, $20,800. Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,820 hours. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter all variances as positive amounts.

Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,820 hours hours. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter all variances as positive amounts.

TIGER EQUIPMENT INC.

Factory Overhead Cost Variance Report - Welding Department

For the Month Ended May 31

1	Normal capacity for the month		8,500 hours
2	Actual production for the month		8,820 hours
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4		Actual	Budget	Variances: Unfavorable	Variances: Favorable
5	Variable costs:
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10	Fixed costs:
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