James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 8,000 units (80% of its production capacity of 10,000 units) and prepared the following overhead budget: Operating Levels Overhead Budget 884 Production in units 8,000 Standard direct labor hours 32,000 Budgeted overhead Variable overhead costs Indirect materials $ 22,400 Indirect labor 32,000 Power 6,400 Maintenance 3,200 Total variable costs 64,000 Fixed overhead costs Rent of factory building 16,000 Depreciation-Machinery 11,300 Supervisory salaries 30,300 Total fixed costs 57,600 Total overhead costs $121,600 During May, the company operated at 90% capacity (9,000 units) and incurred the following actual overhead costs: Overhead costs (actual) Indirect materials Indirect labor Power Maintenance Rent of factory building Depreciation-Machinery Supervisory salaries Total actual overhead costs $ 22,400 35,850 7,200 4.405 16,000 11,300 33, 100 $130,255 1. Compute the overhead controllable variance and classify it as favorable or unfavorable 2. Compute the overhead volume variance and classify it as favorable or unfavorable. 3. Prepare an overhead variance report at the actual activity level of 9,000 units. 1. Compute the overhead controllable variance and classify it as favorable or unfavorable. 2. Compute the overhead volume variance and classify it as favorable or unfavorable. 3. Prepare an overhead variance report at the actual activity level of 9,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead controllable variance and classify it as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance.) Controllable variance Total actual overhead Flexible budget overhead Variable Fixed Total Overhead controllable variance 0 Required Required 2 Rent of factory building Depreciation-Machinery Supervisory salaries Total actual overhead costs 16,000 11,300 33, 100 $130,255 1. Compute the overhead controllable variance and classify it as favorable or unfavorable. 2. Compute the overhead volume variance and classify it as favorable or unfavorable. 3. Prepare an overhead variance report at the actual activity level of 9,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the overhead volume variance and classify it as favorable or unfavorable. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Do not rolnd intermediate calculations.) Volume Variance Total budgeted fixed OH Totalfixed overhead applied Volume variance