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 8,860 hrs. Variances Budget Actual Favorable lavorable Variable costs: Indirect factory wages Power and light $(264) $ 31,896 21,264 17,720 $ 70,880 $ 32,400 21,000 18,250 $ 71,650 Indirect materials Total variable cost Fixed costs: $ 20,000 $20,000 Supervisory salaries Depreciation of plant and equipment Insurance and property taxes 36,200 15,200 1.400 36,200 15,200 Total fixed cost $ $ 71,400 Total factory overhead cost $142,280 $143,050 Total controllable variances $(264) Netcontrollable variance-unfavorable Volume variance favorable: Excess hours used over normal at the standard rate for fixed factory overhead: (8,400 hrs. - 8,860 hrs.) $8.50 (3,910) Total factory overhead cost variance-favorable $(3,140) The budgeted variable costs are determined by multiplying the 8,850 actual hours by the variable overhead rate the May budget divided by 8,400 hours for each variable overhead cost). Thus, Indirect factory wages, $31,896 = 8,860 hrs. * ($30,240 +2,400 hrs.) Power and light, $21,264 = 8,880 hrs. * ($20,160 + ,400 hrs.) Indirect materials, $17,720 = 8,860 hrs. * ($16,800 + 3,400 hrs.) Fixed factory overhead rate: 71400 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 8,860 hrs. Variances Budget Actual Favorable lavorable Variable costs: Indirect factory wages Power and light $(264) $ 31,896 21,264 17,720 $ 70,880 $ 32,400 21,000 18,250 $ 71,650 Indirect materials Total variable cost Fixed costs: $ 20,000 $20,000 Supervisory salaries Depreciation of plant and equipment Insurance and property taxes 36,200 15,200 1.400 36,200 15,200 Total fixed cost $ $ 71,400 Total factory overhead cost $142,280 $143,050 Total controllable variances $(264) Netcontrollable variance-unfavorable Volume variance favorable: Excess hours used over normal at the standard rate for fixed factory overhead: (8,400 hrs. - 8,860 hrs.) $8.50 (3,910) Total factory overhead cost variance-favorable $(3,140) The budgeted variable costs are determined by multiplying the 8,850 actual hours by the variable overhead rate the May budget divided by 8,400 hours for each variable overhead cost). Thus, Indirect factory wages, $31,896 = 8,860 hrs. * ($30,240 +2,400 hrs.) Power and light, $21,264 = 8,880 hrs. * ($20,160 + ,400 hrs.) Indirect materials, $17,720 = 8,860 hrs. * ($16,800 + 3,400 hrs.) Fixed factory overhead rate: 71400