For May, Marlana company planned production of 18,400 units (80% of its production capacity of 23,000 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 Indirect materials Indirect labor Power Maintenance Fixed overhead costs 80% Operating Level 18,400 $ 33,120 55,200 13,800 4,968 Total variable overhead costs 107,088 34,500 23,000 44,620 102,120 Rent of building Depreciation-Machinery Supervisory salaries Total fixed overhead costs Total overhead $ 209,208 It actually operated at 90% capacity (20,700 units) In May and Incurred the following actual overhead. Indirect labor Power Maintenance Actual Overhead Costs Indirect materials $ 33,120 59,000 15,525 11,800 34,500 23,000 48,000 $ 224,945 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 varlance report at the actual activity level of 20,700 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. Note: Indicate the effect of the variance by selecting favorable, unfavorable, or no variance. Actual total overhead Budgeted (flexible) overhead Controllable variance Controllable variance 0