Check my work 12 For May, Mariana company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget. The company applies overhead with a standard of 2 DLH per unit and a standard overhead rate of $4 per DLH. 3 points 80% Operating Level 10,000 X 01:04:15 $ 16,000 25,000 6,000 eBook Overhead Budget Production (in units) Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead costs Fixed overhead costs Rent of building Depreciation-Machinery Supervisory salaries Total fixed overhead costs Total overhead 3,000 50,000 *** Print 13,000 11,900 15,100 40,000 $ 90,000 References It actually operated at 90% capacity (11,250 units) in May and incurred the following actual overhead. Actual Overhead Costs Indirect materials Indirect labor Power Maintenance Rent of building Depreciation Machinery Supervisory salaries Actual total overhead $ 16,000 27,675 6,750 4,210 13,000 11,900 18,500 $ 98,035 1. Compute the overhead controllable variance and identify it as favorable or unfavorable. 2. Compute the overhead volume variance and identify it as favorable or unfavorable. 3. Prepare an overhead variance report at the actual activity level of 11,250 units. Required 1 Required 2 Required 3 Compute the overhead controllable variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Controllable variance Actual total overhead Budgeted (flexible) overhead 0 Controllable variance Required 1 Required 2 > Required 1 Required 2 Required 3 Compute the overhead volume variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Do not round intermediate calculations.) Volume Variance Volume variance 12 Required 1 Required 2 Required 3 Prepare an overhead variance report at the actual activity level of 11,250 units. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Do not round intermediate calculations.) 3 points MARIANA COMPANY Overhead Variance Report For Month Ended May 31 01:03:08 Expected Actual eBook Volume variance Flexible Budget Actual Results Variances Favorable/Unfavorable Controllable Variance Variable overhead costs Print References Fixed overhead costs: Total overhead costs Volume Variance Volume variance Total overhead variance