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 8,600 hours.

TIGER EQUIPMENT INC.

Factory Overhead Cost BudgetWelding Department

For the Month Ended May 31

1	Variable costs:
2	Indirect factory wages	$40,420.00
3	Power and light	26,660.00
4	Indirect materials	17,200.00
5	Total variable cost		$84,280.00
6	Fixed costs:
7	Supervisory salaries	$19,200.00
8	Depreciation of plant and equipment	36,500.00
9	Insurance and property taxes	17,400.00
10	Total fixed cost		73,100.00
11	Total factory overhead cost		$157,380.00

During May, the department operated at 9,160 standard hours, and the factory overhead costs incurred were indirect factory wages, $43,604; power and light, $28,108; indirect materials, $18,840; supervisory salaries, $19,200; depreciation of plant and equipment, $36,500; and insurance and property taxes, $17,400.

Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 9,160 hours. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter all variances as positive amounts.

Amount Descriptions

Amount Descriptions
Depreciation of plant and equipment
Indirect factory wages
Indirect materials
Insurance and property taxes
Net controllable variance-favorable
Net controllable variance-unfavorable
Power and light
Supervisory salaries
Total controllable variances
Total factory overhead cost
Total factory overhead cost variance-favorable
Total factory overhead cost variance-unfavorable
Total fixed factory overhead cost
Total variable factory overhead cost
Volume variance-favorable
Volume variance-unfavorable

Factory Overhead Cost Variance Report

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. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Enter all variances as positive amounts.

TIGER EQUIPMENT INC.

Factory Overhead Cost Budget - Welding Department

For the Month Ended May 31

1	Productive capacity for the month		8,600 hours
2	Actual production for the month		9,160 hours
3
4		Budget (at Actual Production)	Actual	Variances: Favorable	Variances: Unfavorable
5	Variable factory overhead costs:
6
7
8
9
10	Fixed factory overhead costs:
11
12
13
14
15
16
17
18
19
20