For May, Mariana company planned production of 8,000 units (80% of its production capacity of 10,000 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 $3.85 per DLH. Overhead Budget Production (in units) Budgeted overhead Variable overhead costs Indirect materials 80% Operating Level 8,000 $ 15,000 Indirect labor 24,000 Power 6,000 Maintenance 3,000 Total variable overhead costs 48,000 Fixed overhead costs 15,000 10,000 19,400 44,400 $ 92,400 Rent of building Depreciation-Machinery Supervisory salaries Total fixed overhead costs Total overhead It actually operated at 90% capacity (9,000 units) in May and incurred the following actual overhead. Actual Overhead Costs Indirect materials Indirect labor Power Maintenance Rent of building Depreciation-Machinery Supervisory salaries Actual total overhead $ 15,000 26,500 6,750 4,000 15,000 10,000 22,000 $ 99,250 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 9,000 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 selecting favorable, unfavorable, or no variance.) Actual total overhead Budgeted (flexible) overhead. Controllable variance Controllable Variance 0 For May, Mariana company planned production of 8,000 units (80% of its production capacity of 10,000 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 $3.85 per DLH. Overhead Budget Production (in units) Budgeted overhead Variable overhead costs Indirect materials 80% Operating Level 8,000 $ 15,000 Indirect labor 24,000 Power 6,000 Maintenance 3,000 Total variable overhead costs 48,000 Fixed overhead costs 15,000 10,000 19,400 44,400 $ 92,400 Rent of building Depreciation-Machinery Supervisory salaries Total fixed overhead costs Total overhead It actually operated at 90% capacity (9,000 units) in May and incurred the following actual overhead. Actual Overhead Costs Indirect materials Indirect labor Power Maintenance Rent of building Depreciation-Machinery Supervisory salaries Actual total overhead $ 15,000 26,500 6,750 4,000 15,000 10,000 22,000 $ 99,250 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 9,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead volume variance and identify it as favorable or unfavorable. (Indicate the effect of the variance by selecting favorable, unfavorable, or no variance.) Volume Variance Volume variance < Required 1 Required 3 > Supervisory salaries Total fixed overhead costs Total overhead 19,400 44,400 $ 92,400 It actually operated at 90% capacity (9,000 units) in May and incurred the following actual overhead. Actual Overhead Costs Indirect materials Indirect labor Power Maintenance Rent of building Depreciation-Machinery Supervisory salaries Actual total overhead $ 15,000 26,500 6,750 4,000 15,000 10,000 22,000 $ 99,250 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 9,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an overhead variance report at the actual activity level of 9,000 units. (Indicate the effect of each variance by sele favorable, unfavorable, or no variance.) Expected Actual Controllable Variance MARIANA COMPANY Overhead Variance Report For Month Ended May 31 Flexible Budget Actual Results Variances Favorable/Unfavorable Variable overhead costs: Fixed overhead costs: Total overhead costs. Volume Variance Volume variance Total overhead variance