For May, Mariana company planned production of 8,800 units ( 80% of its production capacity of 11,000 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. It actually operated at 90% capacity (9,900 units) in May and incurred the following actual 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 9,900 units. \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Controllable variance } \\ \hline Actual total overhead & & \\ \hline Budgeted (flexible) overhead & & \\ \hline & & & \\ \hline & & & \\ \hline Controllable variance & & & \\ \hline \end{tabular} \begin{tabular}{|l|l|} \hline & \\ \hline & \\ \hline & \\ \hline Volume variance & \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ MARIANA COMPANY } \\ \hline \multicolumn{5}{|c|}{ Overhead Variance Report } \\ \hline \multicolumn{5}{|c|}{ For Month Ended May 31} \\ \hline \multicolumn{5}{|l|}{ Expected } \\ \hline \multicolumn{5}{|l|}{ Actual } \\ \hline Controllable Variance & Flexible Budget & Actual Results & Variances & Favorable/Unfavorable \\ \hline \multicolumn{5}{|l|}{ Variable overhead costs: } \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline & & & & \\ \hline \multicolumn{5}{|l|}{ Fixed overhead costs: } \\ \hline \\ \hline \\ \hline \\ \hline \\ \hline & & & & \\ \hline \multicolumn{5}{|l|}{ Total overhead costs } \\ \hline \multicolumn{5}{|l|}{ Volume Variance } \\ \hline \\ \hline & & & & \\ \hline \multicolumn{5}{|l|}{ Volume variance } \\ \hline Total overhead variance & & & & \\ \hline \end{tabular}