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.

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.

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. 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. Tiger Equipment Inc. Factory Overhead Cost Variance Report-Welding Department For the Month Ended May 31 Normal capacity for the month 8,400 hrs Actual production for the month 8,660 hrs. Budget Actual (at Actual Unfavorable Favorable Cost Production) Variances Variances Varanle factory overhead costs: Indirect factory wages Power and light Indirect materials Total variable cost Fixed factory overhead costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes QUOI QUOD DOO OOOOO Total Toxed cost Total factory overhead cast o Total controllable variances Net controllable variance-unfavorable Volume variance-favorable: Excess hours used over normal at the standard rate for fixed factory averhead Total factory overhead cost variance-favorable