Blaze Corp, applies overhead on the basis of direct labor hours. For the month of March, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following budget Overhead Budget Operating Levels 80% Production in units 10,000 Standard direct labor hours 20,000 Budgeted overhead Variable overhead costs Indirect materials $ 12,000 Indirect labor 20,000 Power 9,400 Malntenance 6.600 Total variable costs 48.000 Fixed overhead costs Rent of factory building 18,000 Depreciation-achinery 20,000 Taxes and Insurance 3,300 Supervisory salaries 16.700 Total fixed costs 59.000 Total overhead costs $106,000 During March, the company operated at 90% capacity (11.250 units), and it incurred the following actual overhead costs Overhead costs (actual) Indirect materials Indirect labor Power Maintenance Rent of factory building Depreciation-Machinery Taxes and insurance Supervisory salaries Total actual overhead costs $ 12,800 20,000 10,575 8,690 18,000 18,000 3,900 20.000 $111,165 1. Compute the overhead controllable variance 2. Compute the overhead volume variance 3. Prepare an overhead variance report at the actual activity level of 9.000 units