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.

	Operating Levels
Overhead Budget	80%
Production in units		10,000
Standard direct labor hours		30,000
Budgeted overhead
Variable overhead costs
Indirect materials	$	16,200
Indirect labor		16,600
Power		10,000
Maintenance		8,200
Total variable costs		51,000
Fixed overhead costs
Rent of factory building		15,000
DepreciationMachinery		25,000
Taxes and insurance		2,600
Supervisory salaries		23,400
Total fixed costs		66,000
Total overhead costs	$	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	$	16,200
Indirect labor		16,600
Power		11,250
Maintenance		10,000
Rent of factory building		15,000
DepreciationMachinery		24,150
Taxes and insurance		3,200
Supervisory salaries		25,200
Total actual overhead costs	$	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.

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.) 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.) Prepare an overhead variance report at the actual activity level of 9,000 units. Classify as favorable or unfavorable. (Indicate che effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.) 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.) 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.) Prepare an overhead variance report at the actual activity level of 9,000 units. Classify as favorable or unfavorable. (Indicate che effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.)