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 7,400 hours.

Variable costs:
Indirect factory wages	$25,160
Power and light	16,724
Indirect materials	13,764
Total variable cost		$55,648
Fixed costs:
Supervisory salaries	$14,810
Depreciation of plant and equipment	37,980
Insurance and property taxes	11,590
Total fixed cost		64,380
Total factory overhead cost		$120,028

During May, the department operated at 7,800 standard hours. The factory overhead costs incurred were indirect factory wages, $26,790; power and light, $17,310; indirect materials, $14,800; supervisory salaries, $14,810; depreciation of plant and equipment, $37,980; and insurance and property taxes, $11,590.

Required:

Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 7,800 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.

Tiger Equipment Inc. Factory Overhead Cost Variance ReportWelding Department For the Month Ended May 31

Normal capacity for the month 7,400 hrs.
Actual production for the month 7,800 hrs.
	Actual	Budget	Unfavorable Variances	Favorable Variances
Variable costs:
Indirect factory wages	$	$	$	$
Power and light	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Indirect materials	fill in the blank	fill in the blank	fill in the blank	fill in the blank
Total variable cost	$	$
Fixed costs:
Supervisory salaries	$	$
Depreciation of plant and equipment	fill in the blank	fill in the blank
Insurance and property taxes	fill in the blank	fill in the blank
Total fixed cost	$	$
Total factory overhead cost	$	$
Total controllable variances			$	$
Net controllable variance-favorable/Net controllable variance-unfavorable	blank	blank	$- Select -
Volume variance-favorable:/Volume variance-unfavorable:
Excess hours used over normal at the standard rate for fixed factory overhead				fill in the blank
Total factory overhead cost variance-favorable/Total factory overhead cost variance-unfavorable				$- Select -