OW eBook 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 7,000 hours. 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 Print Item Normal capacity for the month 7,000 hrs. Actual production for the month 7,400 hrs. Variable costs: Indirect factory wages Power and light Indirect materials $23,800 14,350 12,250 Total factory overhead cost During May, the department operated at 7,400 standard hours. The factory overhead costs incurred were indirect factory wages, $25,410; power and light, $14,900; indirect materials, $13,200; supervisory salaries, $12,400; depreciation of plant and equipment, $31,800; and insurance and property taxes, $9,700. $12,400 31,800 9,700 Required: Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 7,400 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. Check My Work 1 more Check My Work uses remaining $50,400 53,900 $104,300 Tiger Equipment Inc. Factory Overhead Cost Variance Report-Welding Department For the Month Ended May 31 Actual 25,410 388 14,900 Budget Unfavorable Variances Favorable Variances OS X 13.200 All work saved. Save and Exit

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