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. 80% Operating Overhead Budget Level Production (in units) 18,400 Budgeted overhead Variable overhead costs Indirect materials $ 33,120 Indirect labor 55,200 Power 13,800 Maintenance 4,968 Total variable overhead costs 107,088 Fixed overhead costs Rent of building 34,500 Depreciation-Machinery 23,090 Supervisory salaries 44,620 Total fixed overhead costs 102,120 Total overhead $ 209,208 It actually operated at 90% capacity (20,700 units) in May and incurred the following actual overhead. Actual Overhead Costs Indirect materials $ 33, 128 Indirect labor 59,980 Power 15,525 Maintenance 11, 800 Rent of building 34,509 Depreciation-Machinery 23,600 Supervisory salaries 48,600 Actual total overhead $ 224,945 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. Overhead Variance Report For Month Ended May 31 Expected Actual Controllable Variance Flexible Budget Actual Results Variances Variable overhead costs: Fixed overhead costs: Total overhead costs Volume Variance Volume variance Total overhead variance