For May, Mariana company planned production of 23,200 units (80% of its production capacity of 29,000 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) 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 23,200 $ 41,760 69,600 17,400 6,264 135,024 43,500 29,000 56,260 128,760 $263,784 It actually operated at 90% capacity (26,100 units) in May and incurred the following actual overhead. Indirect materials Indirect labor Power Maintenance Rent of building Actual Overhead Costs $ 41,760 74,000 19,575 15,400 43,500 29,000 60,000 $ 283,235 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 26,100 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 effect of the variance by selecting favorable, unfavorable, or no variance.) Actual total overhead Budgeted (flexible) overhead Controllable variance Controllable variance