During May, the company operated at 90% capacity (11250 units) and incurred the following actual overhead costs: Overhead costs (actual) Indirect materials $ 20,400 Indirect labor 33, 350 Power 6.750 Maintenance 4,880 Rent of factory building 12,000 Depreciation Machinery 11,800 Supervisory salaries 33,500 Total actual overhead conta $122,600 1. Compute the overhead controllable variance and classify it as favorable or unfavorable. 2. Compute the overhead volume variance and classify it as favorable or unfavorable. 3. Prepare an overhead variance report at the actual activity level of 11,250 units. James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget Operating Levels 800 10,000 30,000 Overhead Budget Production in units Standard direct labor hours Budgeted overhead Variable overhead coats Indirect materials Indirect labor Power Maintenance Total variable costa Pixed overhead costs Rent of factory building Depreciation Machinery Supervisory salaries Total fixed costs Total overhead coats $ 20,400 30,000 6,000 3.600 60,000 12,000 11,800 30,200 54,000 $114,000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead controllable variance and classify it as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Controllable variance Total actual overhead Flexible budget overhead Total Overhead controllable variance Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead volume variance and classify it 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 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 11,250 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.) JAMES CORP. Overhead Variance Report For Month Ended May 31 Expected production volume Production level achieved Volume variance Controllable Variance Variable overhead costs: Flexible Budget Actual Results Variances Fav./Unfav. Fixed overhead costs: Total overhead costs