TIGER EQUIPMENT INC.

Factory Overhead Cost Budget - Welding Department

For the Month Ended May 31

1	Variable costs:
2	Indirect factory wages	$42,000.00
3	Power and light	26,880.00
4	Indirect materials	16,800.00
5	Total variable cost		$85,680.00
6	Fixed costs:
7	Supervisory salaries	$20,400.00
8	Depreciation of plant and equipment	35,400.00
9	Insurance and property taxes	15,600.00
10	Total fixed cost		71,400.00
11	Total factory overhead cost		$157,080.00

During May, the department operated at 8,740 standard hours. The factory overhead costs incurred were indirect factory wages, $44,216; power and light, $27,696; indirect materials, $18,090; supervisory salaries, $20,400; depreciation of plant and equipment, $35,400; and insurance and property taxes, $15,600.

Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,740 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.

Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,740 hours 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 Variance Report - Welding Department

For the Month Ended May 31

1	Normal capacity for the month		8,400 hours
2	Actual production for the month		8,740 hours
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4		Actual	Budget	Variances: Unfavorable	Variances: Favorable
5	Variable costs:
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10	Fixed costs:
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