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 808 8,000 20,000 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 $ 25,000 12,000 5,800 3,200 46,000 17,000 25,000 3,200 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 Power Maintenance Rent of factory building Depreciation-Machinery Taxes and insurance Supervisory salaries Total actual overhead costs $ 25,000 12,000 6,525 4,320 17,000 24,000 3,750 13,550 $ 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. 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 0 Overhead controllable variance