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Exercise 21-21 Overhead controllable and volume variances; overhead variance report LO P3 James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 8,400 units (80% of its production capacity of 10,500 units) and prepared the following overhead budget Operating Levels Overhead Budget Production in units B0% 8,400 21,000 Standard direct labor hours Budgeted overhead Variable overhead costs Indirect materials Indirect labor $12,600 21,000 8,400 4,200 Power Maintenance Total variable cOsts 46,200 Fixed overhead costs Rent of factory building Depreciation-Machinery Supervisory salaries Total fixed costs 17,000 10,200 19,000 46,200 Total overhead cOsts $92,400 During May, the company operated at 90% capacity (9,450 units) and incurred the following actual overhead costs: Overhead Costs Indirect materials Indirect labor $12,600 23,425 9,450 5,330 17,000 10,200 21,800 Power Maintenance Rent of factory building Depreciation-Machinery Supervisory salaries Total actual overhead costs $99,805 1. Compute the overhead controllable variance. 2. Compute the overhead volume varlance. 3. Prepare an overhead variance report at the actual activity level of 9,450 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 Controllable variance Total actual overhead Flexible budget overhead Total 0 Overhead controllable variance Deguirnd 4 1. Compute the overhead controllable varlance. 2. Compute the overhead volume variance. 3. Prepare an overhead variance report at the actual activity level of 9,450 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. (Do not round intermediate calculations.) Volume Variance Volume variance 3. Prepare an overhead variance report at the actual activity level of 9,450 units. 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 9,450 units. Classify as favorable or round intermediate calculations.) unfavorable. (Do not JAMES CORP Overhead Variance Report For Month Ended May 31 Expected production volume Production level achieved Volume variance Controllable Variance Flexible Budget Actual Results Variances Fav./Unfav. Variable overhead costs: Fixed overhead costs: Total overhead costs