PR 23-4A 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 8,400 hours OBJ.4 Variable costs: Indirect factory wages Power and light Indirect materials $30,240 20,160 16,800 Total variable cost 67,200 Fixed costs: Supervisory salaries Depreciation of plant and equipment36,200 Insurance and property taxes $20,000 15,200 Total fixed cost 71,400 $138,600 Total factory overhead cost 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