For May, Mariana company planned production of11,200 units (80% of its production capacity of 14,000 units] and prepared the following overhead budget. The company applies overhead with a standard of3 DLH per unit and a standa rd overhead rate of $3.79 per DLH. 30% Operating Overhead Budget Level Production (in units] 11,200 Budgeted overhead Variable overhead costs Indirect materials 5 20,160 Indirect labor 33,600 Power 3,400 Maintenance 3,024 Total variable overhead costs 65,154 Fixed warhead costs Rent of building 21,000 Depreciationll'lachinergrr 14,000 Supervisory salaries 2?,160 Total fixed overhead costs 62,160 Total overhead 5 127:3\" It actually operated at 90% capacity (12,600 units) in Mayr and incurred the following actual overhead. Act ual Overhead Costs Indirect materials 5 20,160 Indirect labor 36,500 Power 9,450 Maintenance 6,400 Rent of building 21,000 DepreciationI'Iachineryr 14,000 Supervisory salaries 30,000 Actual total overhead 5 13?,510 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 12,000 units. Complete this question by entering your answers in the labs below. Required 1 Required 2 Required 3 Compute the overhead controllable variance and identify it as favorable or unfavorable. (Indicate lire effect of the variance by selecting favorable, unfavorable, or no variance.) ( Prev 12 of 17 J.IIUJ.I ELI. LGIJUI 44,uw Power 3,400 Maintenance 3,824 Total variable overhead costs 55,154 Fixed overhead costs Rent of building 21,000 DepreciationMachinery 14,000 Supervisory salaries 2?,160 Total fixed overhead costs 525153 Total overhead 5 1275344 It actually operated at 90% capacity [12,600 units) in May arid incurred the following actual overhead. Actual Overhead Costs Indirect materials 5 20,160 Indirect labor 36,500 Power 9,450 Maintenance 6,400 Rent of building 21,800 DepreciationMachinery 14,600 Supervisory salaries 38,800 Actual total overhead 5 1375519 1. Compute the overhead controllable variance and identify it as favorable or unfavorable. 9. Compute the overhead volume variance and identify it as favorable or unfavorable. 3. Prepare an overhead variance report at the actual activity level of 12,600 units. Complete this question by entering your answers in the labs 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. Do not round intermediate calculations.) Standard overhead applied : udgeled (exible) overhead 135,492 Volume variance Prepare an overhead variance report at the actual activity level of 12,600 units. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Do not round intermediate calculations. MARIANA COMPANY Overhead Variance Report For Month Ended May 31 Expected 80% of capacity Actual 90% of capacity Controllable Variance Flexible Budget Actual Results Variances Favorable/Unfavorable Variable overhead costs: Indirect materials $ 20, 160 Indirect labor 36.500 Power 9,450 Maintenance 6,400 Total variable overhead costs 72,510 Fixed overhead costs Rent of building 21,000 21,000 Depreciation-Machinery 14,000 14,000 Supervisory salaries 27,160 30,000 Total fixed overhead costs 62,160 65,000 Total overhead costs $ 62, 160 $ 137,510 Volume Variance Budgeted (flexible) overhead 135,492 Standard overhead applied Volume variance Favorable Total overhead variance