Exercise 23-21 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 8,000 units (80% of its production capacity of 10,000 units) and prepared the following overhead budget Operating Levels 8.000 20.000 $16.000 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 Supervisory Salaries Total Fixed costs Total overhead costs 3.000 44,000 16.000 10.10 14,900 41.00 $85.000 During May, the company operated at 90% capacity (9.000 units) and incurred the following actual overhead costs Check my work During May, the company operated at 90% capacity (9.000 units) and incurred the following actual overhead costs Overhead Costs Indirect materials Indirect labor Maintenance Rent of factory building Depreciation Machinery Supervisory salaries Total actual overhead costs 516,000 22,200 5,625 3,975 16.00 10,160 $91,500 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 Prepare an overhead variance report at the actual activity level of 9.000 units. Classify as favorable or unfavorable. Do not Prepare an overhead variance report at the actual activity level of 9,000 units. Classify as favorable or unfavorable. (Do not round intermediate calculations.) JAMES CORP Overhead Variance Report For Month Ended May 31 80% of capacity 190% of capacity 5 5 .125 Favorable Flexible Budget Actual Results Variances Fav/Unfav. Expected production volume Production level achieved Volume variance Controllable Variance Variable overhead costs: Indirect materials Indirect labor Power Maintenance Total variable costs Fbced overhead costs Rent of factory building Depreciation Machinery Supervisor salaries Maintenance Total variable costs Fixed overhead costs: Rent of factory building Depreciation Machinery Supervisory salaries Total overhead costs