Tiger Equipment Inc., a manufacturer of construction equipment, prepared the following factory overhead cost budget for the Welding Department for May 2012. The company expected to operate the department at 100% of normal capacity of 7,000 hours.

During May, the department operated at 7,400 standard hours, and the factory overhead costs incurred were indirect factory wages, $23,580; power and light, $13,120; indirect materials, $11,310; supervisory salaries, $12,000; depreciation of plant and equipment, $31,450; and insurance and property taxes, $9,750. Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 7,400 hours.

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Variable costs: $2,050 Indirect factory wages Power and light 12,600 Indirect materials 10,500 $45,150 Total variable cost Fixed costs: $12,000 Supervisory salaries Depreciation of plant and equipment 31,450 Insurance and property taxes 9,750 Total fixed cost 53,200 Total factory overhead cost $98,350