16 0.94 points eBook Print References Check my wo For May, Mariana company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the following overhead budget. The company applies overhead with a standard of 3 DLH per unit and a standard overhead rate of $3.85 per DLH. 80% Operating Level 8,000 Overhead Budget Production (in units) Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Rent of building Depreciation-Machinery Supervisory salaries Total fixed overhead costs Total overhead $ 15,000 24,000 6,000 3,000 48,000 15,000 10,000 19,400 44,400 $ 92,400 It actually operated at 90% capacity (9,000 units) in May and incurred the following actual overhead. Indirect materials Indirect labor Power Maintenance Actual Overhead Costs $ 15,000 26,500 6,750 4,000 15,000 10,000 22,000 $ 99,250 Rent of building Depreciation-Machinery Supervisory salaries Actual total overhead 1. Compute the overhead controllable variance and identify it as favorable or unfavorable. 2. Compute the overhead volume variance and identify it as favorable or unfavorable. 3. Prepare an overhead variance report at the actual activity level of 9,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead controllable variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Actual total overhead Budgeted (flexible) overhead Fixed overhead Variable overhead Controllable variance Controllable Variance 0 Unfavorable < Required 1 Required 2 > 1. Compute the overhead controllable variance and identify it as favorable or unfavorable. 2. Compute the overhead volume variance and identify it as favorable or unfavorable. 3. Prepare an overhead variance report at the actual activity level of 9,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead volume variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Volume Variance Standard overhead applied Budgeted (flexible) overhead Volume variance Favorable < Required 1 Required 3 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an overhead variance report at the actual activity level of 9,000 units. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance.) Expected Actual Controllable Variance Variable overhead costs: Indirect materials Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs: Rent of building Depreciation-Machinery Supervisory salaries Total fixed overhead costs Total overhead costs Volume Variance Budgeted (flexible) overhead Standard overhead applied Volume variance Total overhead variance MARIANA COMPANY Overhead Variance Report For Month Ended May 31 80% of capacity 90% of capacity Flexible Budget Actual Results Variances Favorable/Unfavorable < Required 2 Required 3