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. 80% Operating Level 10,000 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 $ 21,000 30,000 6,000 3,000 60,000 14,000 11,100 28,900 54,000 $ 114,000 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 $ 21,000 33,300 6,750 4,025 14,000 11,100 32,600 $ 122,775 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 selecting favorable, unfavorable, or no variance.) Controllable variance Actual total overhead Budge (flexible) overhead 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 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. (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