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 80% 8,000 22,000 Overhead Budget Production in units Standard direct labor hours Budgeted overhead Variable overhead costs Indirect materials Indirect labor Power Maintenance Total variable costs Fixed overhead costs Rent of factory building Depreciation-Machinery Supervisory salaries Total fixed costs Total overhead costs $ 13,200 22,000 8,800 4,400 48,400 18,000 10,300 17,900 46,200 $94,600 During May, the company operated at 90% capacity (9,000 units) and incurred the following actual overhead costs: Overhead Costs Indirect materials Indirect labor Power Maintenance Rent of factory building Depreciation-Machinery Supervisory salaries Total actual overhead costs $ 13,200 24,500 9,900 5,560 18,000 10,300 20,800 $102,260 1. Compute the overhead controllable variance. 2. Compute the overhead volume variance. 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 Prepare an overhead variance report at the actual activity level of 9,000 units. Classify as favorable or unfavorable. (Do not round intermediate calculations.) JAMES CORP. Overhead Variance Report For Month Ended May 31 [80% of capacity 90% of capacity Expected production volume Production level achieved Volume variance Flexible Budget Actual Results Variances Fav./Unfav. Controllable Variance Variable overhead costs: Indirect materials Indirect labor Power Maintenance Fixed overhead costs: | Rent of factory building DepreciationMachinery Supervisory salaries Total overhead costs