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 Production (in units) Budgeted overhead Variable overhead costs. 80% Operating Level 23,200 Indirect materials $ 41,760 Indirect labor 69,600 Power 17,400 Maintenance 6,264 Total variable overhead costs 135,024 Fixed overhead costs Depreciation-Machinery Supervisory salaries Rent of building Total fixed overhead costs Total overhead It actually operated at 90% capacity (26,100 units) in May and incurred the following actual overhead. 43,500 29,000 56,260 128,760 $263,784 Power Maintenance Actual Overhead Costs Indirect materials $ 41,760 Indirect labor 74,000 19,575 15,400 43,500 29,000 60,000 $283,235 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 26,100 units.