For May, Mariana company planned production of 14,400 units (80% of its production capacity of 18,000 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 $3.79 per DLH.

Overhead Budget	80% Operating Level
Production (in units)	14,400
Budgeted overhead
Variable overhead costs
Indirect materials	$ 25,920
Indirect labor	43,200
Power	10,800
Maintenance	3,888
Total variable overhead costs	83,808
Fixed overhead costs
Rent of building	27,000
DepreciationMachinery	18,000
Supervisory salaries	34,920
Total fixed overhead costs	79,920
Total overhead	$ 163,728

It actually operated at 90% capacity (16,200 units) in May and incurred the following actual overhead.

Actual Overhead Costs
Indirect materials	$ 25,920
Indirect labor	46,500
Power	12,150
Maintenance	8,800
Rent of building	27,000
DepreciationMachinery	18,000
Supervisory salaries	38,000
Actual total overhead	$ 176,370

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 16,200 unit

Compute the overhead controllable variance and identify it as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Compute the overhead volume variance and identify it as favorable or unfavorable. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Do not round intermediate calculations. Prepare an overhead variance report at the actual activity level of 16,200 units. Note: Indicate the effect of each variance bv selectina favorable, unfavorable, or no variance. Do not round intermedia