For May, Mariana company planned production of 15,200 units (80% of its production capacity of 19,000 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. 80% Operating Level 15,200 Overhead Budget Production (in units) Budgeted overhead Variable overhead costs Indirect materials. Indirect labor $ 27,360 45,600 Power 11,400 Maintenance 4,104 Total variable overhead costs. 88,464 Fixed overhead costs 28,500 19,000 36,860 84,360 $172,824 Rent of building Depreciation-Machinery Supervisory salaries: Total fixed overhead costs Total overhead It actually operated at 90% capacity (17,100 units) in May and incurred the following actual overhead. Indirect materials Indirect labor Power Maintenance Actual Overhead Costs $ 27,360 49,000 12,825 9,400 28,500 19,000 40,000 $ 186,085 Rent of building Depreciation-Machinery Supervisory salaries Actual total overhead. 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 17,100 units.