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 Production in units Standard direct labor hours Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power Operating Levels 80% 10,000 30,000 $ 16,200 16,600 10,000 Maintenance 8,200 Total variable costs 51,000 Fixed overhead costs Rent of factory building 15,000 Depreciation-Machinery 25,000 Taxes and insurance 2,600 Supervisory salaries Total fixed costs Total overhead costs 23,400 66,000 $117,000 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 $ 16,200 16,600 11,250 10,000 15,000 24,150 3,200 25,200 $121,600 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead controllable variance. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.) Total actual overhead Flexible budget overhead Controllable Variance Total Overhead controllable variance Required 1 Required 2 > 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead volume variance. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.) Volume Variance Volume variance < Required 1 Required 3 > the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculation BLAZE CORP. Overhead Variance Report Expected production volume Production level achieved Volume variance Controllable Variance Variable overhead costs: Fixed overhead costs: Total overhead costs For Month Ended March 31 Flexible Budget Actual Results Variances Fav./Unfav. Required 2