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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

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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 3 DLH per unit and a standard overhead rate of $4 per DLH B08 Operating Level 10,000 Overhead Budget Production (in unita) Budgeted overhead Veriable overhead costs Indirect materials Indirect labor Power Maintenance Total variable overhead coats Fixed overhead coats Rent of building Depreciation Machinery Supervisory salaries Total fixed overhead coats Total overhead $ 16,200 27,000 5.400 5,400 54,000 23,000 10,800 14,800 48,600 $ 102,600 It actually operated at 90% capacity (11.250 units) in May and incurred the following actual overhead. Actual Overhead Costa Indirect materials Todirect labor Power Maintenance Rent of building Depreciation Machinery Supervisory salaries Actual total overhead $ 16,200 29.875 6,075 6,710 23,000 10.800 18.200 $ 110,860 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. 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. Complete this question by entering your answers in the tabs below. 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 Controllable variance Fi Required 2 > 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. Complete this question by entering your answers in the tabs below. 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 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.) MARIANA COMPANY Overhead Variance Report For Month Ended May 31 Expected Actual Volume variance Controllable Variance Variable overhead costs: Flexible Budget Actual Results Variances Favorable/Unfavorable Fixed overhead costs: Total overhead costs Volume Variance Volume variance Total Overhead variance

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