James Corp. applies overhead on the basis of direct labor hours. For the month of May, the company planned production of 10,000 units (80% of its production capacity of 12,500 units) and prepared the following overhead budget Operating Levels B0% 10,00 20.ee 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 $15, eee 28. vee 5.00e 2,eee 42 Bee 15, eee 11, 200 9. see B6, Bee $78,000 I During May, the company operated at 90% capacity (11.250 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 $15. Bee 22.ee 5,625 3, ese 15,00 11, 2e 12. See $84,775 1. Compute the overhead controllable variance and dassify 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 11.250 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 round intermediate calculations. 36.000 Volume Variance Total budgeted fied OH S Total fred overhead applied Volume variance Favorable