James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 9,600 units ( 80% of its production capacity of 12,000 units) and prepared the following overhead budget: During May, the company operated at 90% capacity (10,800 units) and incurred the following actual overhead costs: 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 10,800 units. \begin{tabular}{|l|l|l|} \hline \multicolumn{2}{|c|}{ Controllable variance } \\ \hline Total actual overhead & & \\ \hline Flexible budget overhead & & \\ \hline & & \\ \hline & & \\ \hline Total & & \\ \hline Overhead controllable variance & & \\ \hline \end{tabular} 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 round intermediate calculations.) JAMES CORP. Overhead Variance Report For Month Ended May 31 \begin{tabular}{|l|l|l|l|l|} \hline Expected production volume & & \multicolumn{2}{l|}{} \\ \hline Production level achieved & & & \\ \hline Volume variance & Flexible Budget & Actual Results & Variances & Fav./Unfav. \\ \hline Controllable Variance & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & & \\ \hline & & & \\ \hline \end{tabular}