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.

Line Item Description	Amount	Amount
Variable costs:
Indirect factory wages	$30,240
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 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.

Required:

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. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry, leave it blank.

Normal capacity for the month 8,400 hrs. Actual production for the month 8,860 hrs.

Tiger Equipment Inc. Factory Overhead Cost Variance Report-Welding Department For the Month Ended May 31

Line Item Description	Actual Cost	Budget (at Actual Production)	Unfavorable Variances	Favorable Variances
Variable factory overhead costs:
Indirect factory wages	$Indirect factory wages	$Indirect factory wages	$Indirect factory wages	$Indirect factory wages
Power and light	Power and light	Power and light	Power and light	Power and light
Indirect materials	Indirect materials	Indirect materials	Indirect materials	Indirect materials
Total variable cost	$Total variable cost	$Total variable cost
Fixed factory overhead costs:
Supervisory salaries	$Supervisory salaries	$Supervisory salaries
Depreciation of plant and equipment	Depreciation of plant and equipment	Depreciation of plant and equipment
Insurance and property taxes	Insurance and property taxes	Insurance and property taxes
Total fixed cost	$Total fixed cost	$Total fixed cost
Total factory overhead cost	$Total factory overhead cost	$Total factory overhead cost
Total controllable variances			$Total controllable variances	$Total controllable variances
Net controllable variance-favorableNet controllable variance-unfavorable	blank	blank	$- Select -	blank
Volume variancefavorable:
Excess hours used over normal at the standard rate for fixed factory overhead