For May, Marlana company planned production of 10.000 units (80% of its production capacity of 12,500 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 $4 per DLH. sex Operating Level 10. Bee Overhead Budget 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 $ 18,280 26,eee 5,200 2.600 52,600 19, een 11,600 16,286 46,800 $ 98,800 It actually operated at 90% capacity (11.250 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 $ 18,280 28,950 5,850 3.745 19,880 11,6ee 19,380 $ 186,645 1. Compute the overhead controllable variance and identify it as favorable or unfavorable. 2 Compute the overhead volume varlance and identify it as favorable or unfavorable. 3. Prepare an overhead varlance report at the actual activity level of 11.250 units. Answer is not complete. 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. Do not round intermediate calculations.) Volume Variance Budgeted (flexible) overhead S 105,300 Standard overhead applied 107,550 Volume variance S 2,250 Favorable Required 1 Required 2 Required 3 Prepare an overhead variance report at the actual activity level of 11.250 units. (Indicate the effect of each variance by selecting favorable, unfavorable, or no variance. Do not round intermediate calculations.) Expected Actual MARIANA COMPANY Overhead Variance Report For Month Ended May 31 80% of capacity 90% of capacity S 1,345 Actual Flexible Budget Results Volume variance Variances Favorable/Unfavorable Controllable Variance Variable overhead costs: Fixed overhead costs: Total overhead costs Volume Variance Volume variance Total overhead variance