Blaze Corp. applies overhead on the basis of direct labor hours. For the month of March, the company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the following budget. Operating Levels Overhead Budget Production in units Standard direct labor hours Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power 80% 8,000 20,000 $ 25,000 12,000 5,800 Maintenance 3,200 Total variable costs 46,000 Fixed overhead costs Rent of factory building 17,000 Depreciation-Machinery 25,000 Taxes and insurance 3,200 Supervisory salaries Total fixed costs Total overhead costs 10,800 56,000 $102,000 During March, the company operated at 90% capacity (9,000 units), and it incurred the following actual overhead costs. Overhead costs (actual) Indirect materials Indirect labor $ 25,000 12,000 Power 6,525 Maintenance 4,320 Rent of factory building 17,000 Depreciation-Machinery Taxes and insurance Supervisory salaries 24,000 3,750 13,550 Total actual overhead costs $106,145 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. 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.) Controllable Variance Total actual overhead Flexible budget overhead Total Overhead controllable variance 0 < Required 1 Required 2 > 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 > 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. Classify as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not round intermediate calculations.) Expected production volume Production level achieved Volume variance Controllable Variance Variable overhead costs: BLAZE CORP. Overhead Variance Report For Month Ended March 31 Flexible Budget Actual Results Variances Fav. / Unfav. Fixed overhead costs: Total overhead costs < Required 2 Required 3 >