For May, Mariana company planned production of 18,400 units (80% of its production capacity of 23,000 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 Production (in units) Budgeted overhead Variable overhead costs Indirect materials Indirect labor 80% Operating Level 18,400 $ 33,120 55,200 Rent of building Power 13,800 Maintenance 4,968 Total variable overhead costs 107,088 Fixed overhead costs 34,500 23,000 Supervisory salaries 44,620 102,120 $ 209,208 Depreciation-Machinery Total fixed overhead costs Total overhead It actually operated at 90% capacity (20,700 units) in May and incurred the following actual overhead. Indirect materials Indirect labor Power Maintenance Actual Overhead Costs $ 33,120 59,000 15,525 11,800 34,500 23,000 48,000 $ 224,945 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 20,700 units.