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 80% 10,000 30,000 Overhead Budget Production in units Standard direct labor hours Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable costs Fixed overhead costs Rent of factory building Depreciation Machinery Taxes and insurance Supervisory salaries Total fixed costs Total overhead costs $13,200 16,600 7,000 5,200 42,000 16,000 25,000 2,300 13,700 57, eee $99,000 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 $ 13,200 16,600 7,875 6,800 16,000 19,550 3,100 20,300 $103,425 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 $ 103 425 Total actual overhead Flexible budget overhead Variable Fixed Total 0 Overhead controllable variance Route 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 Total budgeted fixed OH Total fixed overhead applied Volume variance BLAZE CORP. Overhead Variance Report For Month Ended March 31 Expected production volume 80% of capacity 90% of capacity Production level achieved Volume variance Flexible Budget Variances Controllable Variance Actual Results Fav. / Unfav. Variable overhead costs Indirect materials Indirect labor Power Maintenance Fixed overhead costs: Rent of factory building Depreciation Machinery Taxes and insurance Supervisory salaries Total overhead costs