For May, Marlana company planned production of 22,400 units (80% of its production capacity of 28,000 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 80% Operating Level 22,400 $ 40,320 67,200 Power 16,800 Maintenance 6,048 Total variable overhead costs 130,368 42,000 28,000 54, 320 Fixed overhead costs Rent of building Depreciation-Machinery Supervisory salaries Total fixed overhead costs Total overhead 124,320 $ 254,688 It actually operated at 90% capacity (25,200 units) In May and Incurred the following actual overhead. Indirect materials Indirect labor Power Maintenance Actual Overhead Costs $ 40, 320 71,500 18,900 14,800 42,000 28,000 58,000 $278,528 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.