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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 7,700 hours. Variable costs: Indirect factory wages $23,870 Power and light 15,939 Indirect materials 12,859 Total variable cost $52,668 Fixed costs: Supervisory salaries $14,880 Depreciation of plant and equipment 38.160 Insurance and property taxes 11,640 Total fixed cost 64,680 Total factory overhead cost $117,348 During May, the department operated at 8,200 standard hours. The factory overhead costs incurred were Indirect factory wages, $25,670; power and light, $16,670; indirect materials, $14,000; supervisory sataries, $14,880; depreciation of plant and equipment, $38,160; and insurance and property taxes, $11,640. Required: Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,200 hours. Enter a Prepare a factory overhead cost variance report for May. To be useful for cost control, the budgeted amounts should be based on 8,200 hours. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your per unit computations to the nearest cent, if required. 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 7,700 hrs. Actual production for the month 8,200 hrs. Unfavorable Favorable Actual Budget Variances Variances Variable costs: Indirect factory wages Power and light Indirect materials Total variable cost 56.340 Fixed costs: Supervisory sataries Depreciation of plant and equipment Insurance and property taxes 25.670 16,670 14.000 14.80 16.160 11.640 Total fixed cost 680 Total factory overhead cost 117,348 X 1 3 Tottenha parce Variable costs: Indirect factory wages 25,670 Power and light 16,670 Indirect materials 9 14,000 Total variable cost 56,840 14.NO Fixed costs: Supervisory salaries Depreciation of plant and equipment Insurance and property taxes Total fixed cost 38,1607 11.640 64.680 Total factory overhead cost 117.3 X Total controllable variances Net controllable variance-unfavorable Volume variance favorables Excess hours used over normal at the standard rate for fixed factory overhead Total factory overhead cost variance-favorable