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 8,800 hours.

Variable costs:
Indirect factory wages	$25,520
Power and light	20,416
Indirect materials	16,896
Total variable cost		$62,832
Fixed costs:
Supervisory salaries	$15,180
Depreciation of plant and equipment	38,940
Insurance and property taxes	11,880
Total fixed cost		66,000
Total factory overhead cost		$128,832

During May, the department operated at 9,300 standard hours. The factory overhead costs incurred were indirect factory wages, $27,240; power and light, $21,190; indirect materials, $18,200; supervisory salaries, $15,180; depreciation of plant and equipment, $38,940; and insurance and property taxes, $11,880.

Required:

Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 9,300 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 8,800 hrs.
Actual production for the month 9,300 hrs.
	Actual	Budget	Unfavorable Variances	Favorable Variances
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
Total factory overhead cost
Total controllable variances
Net controllable variance-favorableNet controllable variance-unfavorable
Volume variance-favorable:Volume variance-unfavorable:
Excess hours used over normal at the standard rate for fixed factory overhead
Total factory overhead cost variance-favorableTotal factory overhead cost variance-unfavorable				$- Select -