OBJ.4 the following ble 2014. The company PR 7-4A Factory overhead cost variance report Tiger Equipment Inc., a manufacturer of construction equipment, prepared the follow factory overhead cost budget for the Welding Department for May 2014. The on expected to operate the department at 100% of normal capacity of 8,400 hours. 70 U Variable costs: $30,240 Indirect factory wages 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 standard 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. Instructions 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. L M N O P Q R S Z A $ T U V W Factory Overhead 32.400 17720 Act al costs WN Indicator Power and light Indre materials Total arts Fbed costs Supervisory sales Depreciation of plant and equo sance and property To bd cost Totalt head cost Toulov ce Budged Factory Owhead Amount Produced 5 103 Net controlable variance favorable) unfavorable Volume variancelar) untar De 220